What potential benefits might a 'Qualifying Conversion Salon' receive when converting to an Itan franchise?
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 'Qualifying Conversion Salon' may receive certain financial benefits. A 'Conversion Salon' refers to a pre-existing tanning salon that is converting to an Itan franchise. To qualify for these benefits, the salon must have been in operation for at least one year prior to signing the Franchise Agreement.
If a pre-existing tanning salon meets the criteria to be a 'Qualifying Conversion Salon', Itan may offer a discount on the initial franchise fee. Additionally, Itan may offer a lower royalty fee during the first two years after the salon converts to an Itan franchise.
For prospective franchisees considering converting an existing salon, these incentives could significantly reduce the initial investment and ongoing operating costs during the critical early years of the franchise. It is important to review EXHIBIT "H"-3, the Conversion Addendum, to fully understand the terms and conditions of converting to an Itan franchise.