When is the management fee due to Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| Salon | Discount | Initial Franchise Fee | Development Fee (Imposed under ADA) |
|---|---|---|---|
| Salon 1 | No discount (Unless Veterans Discount applies) | $49,500 | N/A – 3 unit minimum for ADA |
| Salon 2 | $7,500 Discount | $42,000 | N/A – 3 unit minimum for ADA |
| Salon 3 | $11,500 Discount | $38,000 | $129,500 |
| Salon 4 | $13,500 Discount | $36,000 | $165,500 |
| Salon 5 | $15,500 Discount | $34,000 | $199,500 |
| Salon 6 | $17,500 Discount | $32,000 | $231,500 |
| Salon 7+ | $19,500 Discount (per Salon) STARTUP PACKAGE ITEMS PURCHASED | $30,000 (per Salon) | $261,500 (plus additional $30,000 for each Salon in excess of 7) |
| FIT Bodywrap® | FDTC | $4,000 | |
| TANOLOGY® skincare products | EVOLV | $150 to $200 | |
| BRONZE LUMINESSENCE™ lotion | EVOLV | $150 | |
| CALIFORNIA SPA® Ageless Serum | EVOLV | $104 | |
| Branded Supplies (e.g., name tags, bed tents, iTAN tote bags and key tags) | EVOLV | $250 | |
| Total | $4,654 to $4,704 | ||
| TYPE OF FEE 1 | AMOUNT 2, 3 | DUE DATE | REMARKS |
| Late Fee | $100 plus default interest at lesser of (a) 18% per annum (prorated on daily basis) or (b) highest rate allowed by applicable law | 10 days after invoice | If we debit your account but there are insufficient funds, or a check you issue is ret |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the management fee is due 10 days after the invoice date. This fee is imposed if a franchisee fails to timely cure a default under the Franchise Agreement, which allows Itan to designate a person to manage the Salon until the default is resolved.
The management fee is the greater of 10% of Gross Sales or $350 per day, plus any Travel Expenses incurred by the designated manager. Gross Sales includes all gross sums billed or collected from goods and services, advertising revenue, sponsorship fees, and business interruption insurance proceeds, but excludes sales or use taxes, refunds to customers, revenue from the sale of furniture, and tips retained by staff.
This means that if an Itan franchisee breaches the Franchise Agreement and does not resolve the issue promptly, Itan can step in to manage the salon and charge a substantial management fee. The franchisee is responsible for ensuring sufficient funds are available to cover this fee within 10 days of receiving the invoice, or they may incur additional late fees and interest.