What is the name Itan uses for a pre-existing tanning salon that converts to an Itan 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 that is converted to an Itan salon is called a "Conversion Salon". Itan may allow owners of pre-existing tanning salons to purchase a franchise and convert their current business to an Itan.
If a franchisee is acquiring rights for a Conversion Salon, they must sign the Conversion Addendum, which is included as EXHIBIT "H"-3 in the FDD. If the pre-existing tanning salon was operated for at least one year before signing the Franchise Agreement, it is considered a "Qualifying Conversion Salon".
Qualifying Conversion Salons may receive certain financial benefits. Specifically, Itan may offer a discount on the initial franchise fee, as detailed in Item 5 of the FDD. Additionally, these salons may be eligible for a lower royalty fee during the first two years after converting to an Itan, as described in Item 6 of the FDD. This provides an incentive for existing tanning salon owners to join the Itan franchise system.