What is the minimum number of Itan salons the initial investment estimate assumes you commit to develop?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Development Fee: Item 5 discusses how the development fee is calculated. This initial investment estimate assumes you commit to develop either 3 Salons (low estimate) or 5 Salons (high estimate). If you purchase the right to develop more than 5 Salons, your development fee will increase. This estimate does not include your costs to develop any Salon other than the first Salon you develop under the ADA.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the initial investment estimate is based on a commitment to develop a certain number of salons. Specifically, the estimate assumes that a new franchisee will commit to developing either 3 salons (low estimate) or 5 salons (high estimate). This commitment is tied to the area development agreement (ADA).
This means that the development fee, which ranges from $129,500 to $199,500, is calculated based on this commitment to open multiple Itan locations. If a franchisee wants to secure the rights to develop more than 5 salons, the development fee will increase accordingly. The initial investment figures provided do not include the costs associated with developing any salon beyond the first one under the ADA.
Prospective Itan franchisees should carefully consider their capacity and resources for developing multiple locations before entering into an area development agreement. The initial investment for the first salon, combined with the development fee, represents a significant financial commitment. Understanding the terms of the ADA and the obligations for developing subsequent salons is crucial for making an informed decision.