Is there a minimum number of Itan units required to qualify for the ADA?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement; provided, however, that the initial franchise fee imposed under each Franchise Agreement executed pursuant to this Agreement shall be determined in accordance with §5.3. You have no right to construct or operate a Salon until the parties have signed the Franchise Agreement and all ancillary agreements for that Salon. You must develop, open and operate each Salon in compliance with the Franchise Agreement and the Manual.
- 5.3. Initial Franchise Fees. The initial franchise fee imposed under each Franchise Agreement executed pursuant to this Agreement shall be as follows:
| INITIAL FRANCHISE FEE & DEVELOPMENT FEE | | | | | | | |-------
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a minimum of three units are required to qualify for the Area Development Agreement (ADA). The table outlines the initial franchise fee and development fee structure, indicating that the ADA is not applicable for franchisees with fewer than three salons.
For a single Itan salon, the initial franchise fee is $49,500. For a second salon, the initial franchise fee decreases to $42,000. However, these individual salons do not qualify for the ADA. To qualify for the ADA, a franchisee must commit to opening at least three salons, with a combined initial investment of $129,500.
This tiered fee structure incentivizes franchisees to commit to multiple locations, potentially benefiting from economies of scale and increased brand presence. However, it also means that franchisees interested in starting with a single Itan salon will not have access to the benefits and support offered through the ADA, which may include protected territories or other development incentives. Prospective franchisees should carefully consider their expansion plans and financial capabilities when deciding whether to pursue a single unit or commit to an Area Development Agreement with Itan.