Is there a limit on the cost of remodeling that Itan can require as a condition for a Transfer or renewal of an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
the Technology Systems, equipment, fixtures, signs and other items we require.
You must remodel and make all improvements and alterations to your Salon that we reasonably require from
time to time to reflect our then-current standards and specifications. We will not require that you spend more than $25,000 on remodeling your Salon (remodeling does not include changing equipment) during any 5-year period. However, there is no limitation on the cost of any remodeling we require as a condition to a Transfer or renewal of your franchise. You
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, there is a limit to the amount Itan can require a franchisee to spend on remodeling during the franchise term, but this limit does not apply to required remodels as a condition of transfer or renewal. Specifically, Itan will not require a franchisee to spend more than $25,000 on remodeling their salon during any 5-year period. This $25,000 limit excludes the cost of changing equipment.
However, the FDD states explicitly that there is no limit on the cost of remodeling that Itan can require as a condition for a transfer or renewal of the franchise. This means that if a franchisee wants to sell their Itan franchise to someone else (transfer) or continue operating the franchise after the initial term (renewal), Itan could require potentially extensive and costly remodeling as a prerequisite.
This distinction is important for prospective franchisees to understand. While day-to-day remodeling costs are capped, the costs associated with transfer or renewal could be significantly higher and are not limited. A prospective franchisee should consider this potential uncapped expense when evaluating the long-term financial implications of investing in an Itan franchise. It would be prudent to discuss with Itan what conditions or requirements have been placed on franchisees seeking to transfer or renew their franchises in the past to better understand the potential scope of these costs.