What is the standard initial franchise fee for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
INITIAL FEES**
Initial Franchise Fee
You pay us a $49,500 initial franchise fee at the time you sign the Franchise Agreement. The initial franchise fee is uniformly imposed except for the Veterans Discount, Conversion Discount and Multi-Unit Discount discussed below. If multiple discounts apply to the same Salon, you receive the discount that results in the lowest initial franchise fee. Discounts cannot be combined except as otherwise provided below.
Veterans Discount
If you qualify for the Veterans Discount, you pay us a $44,550 initial franchise fee for your 1st franchised Salon, which reflects a 10% discount ($4,950). To qualify, a person holding at least a 51% interest in the franchise must be an honorably discharged veteran of any branch of the United States military and provide us with a Form DD-214. If you purchase multiple Salons, the Veterans Discount will only be applied against the 1st Salon you purchase, except as provided below under Conversion Discount.
Conversion Discount
If you convert a Qualifying Conversion Salon to an iTAN Salon, you qualify for the Conversion Discount and pay us a $15,000 initial franchise fee. The Conversion Discount does not apply if you operated the pre-existing tanning salon less than 1 year prior to signing the Franchise Agreement. The Conversion Discount cannot be combined with the Veterans Discount for the purchase of a single Salon. However, if you qualify for the Veterans Discount and your first Salon qualifies for the Conversion Discount, we apply the Conversion Discount to your 1st franchised Salon and we apply the Veterans Discount to the next Salon you purchase that is
not a Conversion Salon.
Multi-Unit Discount
To qualify for the Multi-Unit Discount you must: (a) purchase franchises for 2 or more Salons at the same time; (b) sign Franchise Agreements for all Salons at the same time; and (c) pay the initial franchise fee, in full, for all Salons when you sign the Franchise Agreements. The Multi-Unit Discount is set forth below:
| Salon | Discount | Initial Franchise Fee | Development Fee (Imposed under ADA) |
|---|---|---|---|
| Salon 1 | No discount (Unless Veterans Discount applies) | $49,500 | N/A – 3 unit minimum for ADA |
| Salon 2 | $7,500 Discount | $42,000 | N/A – 3 unit minimum for ADA |
| Salon 3 | $11,500 Discount | $38,000 | $129,500 |
| Salon 4 | $13,500 Discount | $36,000 | $165,500 |
| Salon 5 | $15,500 Discount | $34,000 | $199,500 |
| Salon 6 | $17,500 Discount | $32,000 | $231,500 |
| Salon 7+ | $19,500 Discount (per Salon) | $30,000 (per Salon) | $261,500 (plus additional |
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the standard initial franchise fee is $49,500. This fee is paid when you sign the Franchise Agreement. However, Itan offers discounts to veterans, those converting existing salons, and those purchasing multiple units. These discounts can reduce the initial franchise fee. If multiple discounts apply, you will receive the discount that results in the lowest initial franchise fee.
For veterans, Itan offers a 10% discount ($4,950) on the initial franchise fee for the first salon, reducing it to $44,550. To qualify, a person holding at least a 51% interest in the franchise must be an honorably discharged veteran of any branch of the United States military and provide a Form DD-214. This discount applies only to the first salon purchased unless a conversion discount also applies.
If you are converting a qualifying existing tanning salon to an Itan salon, the initial franchise fee is $15,000. To qualify for this conversion discount, you must have operated the pre-existing tanning salon for at least one year prior to signing the Franchise Agreement. The conversion discount cannot be combined with the veterans discount for a single salon. However, if both discounts apply to your first salon, the conversion discount will be applied to the first salon, and the veterans discount will be applied to the next salon purchased that is not a conversion salon.
For franchisees purchasing multiple salons, Itan offers a multi-unit discount. To qualify, you must purchase franchises for two or more salons at the same time, sign Franchise Agreements for all salons at the same time, and pay the initial franchise fee in full for all salons when you sign the Franchise Agreements. The discount varies depending on the number of salons purchased, decreasing the initial franchise fee for each additional salon. For example, the initial franchise fee for Salon 2 is $42,000, Salon 3 is $38,000, and Salon 7+ is $30,000 per salon.