When do I pay the nonrefundable development fee for an Itan Area Development Agreement (ADA)?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
alon in excess of 7) |# Development Fee
If you acquire area development rights, you pay us a nonrefundable development fee at the time you sign the ADA. The development fee is calculated as the sum of all initial franchise fees for all Salons you commit to develop under the ADA. The initial franchise fees imposed under the ADA are the same as those discussed above under the Multi-Unit Discount. We expect most area developers will purchase the right to develop between 3 and 5 Salons, which requires a development fee of $129,500 (for 3 Salons) or $199,500 (for 5 Salons). The development fee is deemed to satisfy the initial franchise fee for each Salon you are required to develop under the ADA.
The Conversion Discount does not apply to any Salons developed under an ADA. If you qualify for the Veterans Discount, you receive a $4,950 discount off of your development fee. Development fees are uniformly imposed except as oth
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if you are granted area development rights, you must pay a nonrefundable development fee when you sign the Area Development Agreement (ADA). This fee covers the initial franchise fees for all Itan salons you commit to developing under the ADA.
The development fee is calculated by summing the initial franchise fees for each salon you plan to open. Itan estimates that most area developers will purchase the rights to develop between 3 and 5 salons. This would require a development fee of $129,500 for 3 salons or $199,500 for 5 salons. This development fee satisfies the initial franchise fee requirement for each salon you are obligated to develop under the ADA.
It's important to note that the Conversion Discount does not apply to salons developed under an ADA. However, if you qualify for the Veterans Discount, you will receive a $4,950 discount off your development fee. Development fees are uniformly imposed, with the Veterans Discount being the only exception.