What is the royalty rate for Itan franchisees during months 0 through 12 after the conversion date?

According to Itan's 2025 Franchise Disclosure Document, franchisees who convert their existing business to an Itan salon will pay a royalty rate of 4.5% of gross sales during the first 12 months after the conversion date. This royalty ramp-up schedule is designed to ease the financial transition for new franchisees.

This reduced royalty rate during the initial period can be a significant benefit for franchisees as it allows them to allocate more capital towards other essential aspects of the business, such as marketing, inventory, and operational expenses. It also provides a cushion for the franchisee while they are building their customer base and establishing their presence in the market as an Itan salon.

After the initial 12 months, the royalty rate increases. Months 13 through 24 will see a royalty rate of 5.5% of gross sales, and for the remainder of the term, the royalty rate will be 6.5% of gross sales. Prospective franchisees should carefully consider these escalating royalty rates and factor them into their financial projections to ensure long-term profitability.