How much security deposit does the Itan lease deposit estimate include?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
your general manager during our training program.
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- Lease Deposit: This estimate assumes you lease your premises. Rent varies depending on factors such as the size and location of the premises and local market conditions. We expect most Salons will range in size from 1,500 to 2,000 square feet (we recommend 1,700 square feet) and include 10 to 15 rooms, with rent ranging from $1,800 to $8,000 per month. Landlords typically require security deposits equal to 1- or 2 months' rent and may, in addition, require payment in advance of the first and/or last (or more) month's rent. The estimate in the table includes 1 month's security. Your initial 3 months' rent is included under "Additional Funds". Some franchisees may choose to purchase the real estate. The cost to purchase real estate varies so w
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the lease deposit estimate includes a security deposit equivalent to one month's rent. The document notes that landlords typically require security deposits equal to one or two months' rent. It also states that rent can range from $1,800 to $8,000 per month, depending on the size and location of the premises.
For a prospective Itan franchisee, this means they should budget for a security deposit within the $1,800 to $8,000 range. However, it's important to note that some landlords may require a deposit equal to two months' rent, or even advance payments for the first and last months of rent, which would increase this initial cost. The initial three months' rent is included in "Additional Funds".
Itan franchisees should carefully evaluate local market conditions and lease terms to accurately estimate their lease deposit and rent expenses. As the FDD indicates, the estimates assume no Tenant Improvement (TI) Allowance from the landlord, which could also affect the overall cost. It is advisable to consult with a real estate professional experienced in commercial leasing to negotiate favorable lease terms and understand all associated costs.