What is the minimum time a pre-existing tanning salon must be operated before converting to an Itan Salon to be considered a 'Qualifying Conversion Salon'?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
In some cases, we allow the owner of a pre-existing tanning salon to purchase a franchise and convert their preexisting tanning salon to an iTAN Salon (a "Conversion Salon"). If you are acquiring franchise rights for a Conversion Salon, you must sign the Conversion Addendum attached to this Disclosure Document as EXHIBIT "H"-3. If you operated your pre-existing tanning salon for at least 1 year prior to signing the Franchise Agreement (a "Qualifying Conversion Salon"), you may receive a discount on your initial franchise fee (see Item 5) and a lower royalty fee during the initial 2 years after you convert to an iTAN Salon (see Item 6).
Source: Item 1 — FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–9)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a pre-existing tanning salon must be operated for at least one year before converting to an Itan Salon to be considered a 'Qualifying Conversion Salon'. This one-year operation period must occur prior to signing the Franchise Agreement with Itan.
Meeting this requirement as a 'Qualifying Conversion Salon' has tangible benefits for franchisees. Itan offers a discount on the initial franchise fee and a reduced royalty fee for the first two years after the conversion. These incentives can significantly lower the initial investment and ongoing operational costs for franchisees converting existing tanning salons to the Itan brand.
For prospective franchisees considering converting an existing salon, it's crucial to accurately document the operational history of their business. This documentation will be necessary to demonstrate eligibility for the 'Qualifying Conversion Salon' benefits. Franchisees should carefully review the Conversion Addendum (EXHIBIT 'H'-3) to fully understand the terms and conditions associated with converting to an Itan franchise.