To whom do I pay the initial franchise fee for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 7: ESTIMATED INITIAL INVESTMENT]
ITEM 7 ESTIMATED INITIAL INVESTMENT
Table A: The table below includes the estimated initial investment to develop and open a single Salon. In preparing these estimates, we have assumed your Salon is not a Conversion Salon. If your Salon qualifies as a Conversion Salon, your initial investment may be lower.
YOUR ESTIMATED INITIAL INVESTMENT METHOD OF TO WHOM PAYMENT TYPE OF EXPENDITURE 1 AMOUNT WHEN DUE PAYMENT IS TO BE MADE Initial Franchise Fee 2 $49,500 Lump sum At time you sign Franchise Agreement Us Initial Training Expenses 3 $2,500 to $9,500 As incurred During training Hotels, restaurants, airlines & employee
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 franchise fee is paid directly to Itan. The initial franchise fee is $49,500 and is due in a lump sum at the time you sign the Franchise Agreement.
This fee grants you the right to operate an Itan salon under the Itan brand and system. It covers Itan's initial costs in evaluating your application, providing you with training, and getting you started as a franchisee. It's important to note that this fee is non-refundable, as stated in Item 7.
Prospective franchisees should be aware of the payment schedule and ensure they have the required funds available when signing the Franchise Agreement. Understanding where your money is going is a key part of the due diligence process.