What three conditions must I meet to qualify for the Multi-Unit Discount for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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 $30,000 for each Salon in excess of 7) |
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, to qualify for the Multi-Unit Discount, a prospective franchisee must meet three specific conditions. First, you must purchase franchises for two or more Itan salons simultaneously. Second, you are required to sign Franchise Agreements for all of the salons at the same time. Finally, you must pay the initial franchise fee in full for all of the salons when you sign the Franchise Agreements.
Meeting these conditions allows Itan to offer discounted initial franchise fees for each additional salon beyond the first. The FDD outlines the discounted initial franchise fees in a table, showing a graduated discount. For example, the initial franchise fee for the first salon is $49,500 (unless the Veterans Discount applies). However, for the second salon, the initial franchise fee is $42,000, reflecting a $7,500 discount. The discount increases with each additional salon, up to the seventh salon and beyond, where the initial franchise fee is $30,000 per salon, representing a $19,500 discount per salon.
It's important to note that these discounts apply to the initial franchise fee only. Other fees and costs associated with opening and operating an Itan franchise, such as the Startup Package, are not subject to the Multi-Unit Discount. Additionally, the Multi-Unit Discount is distinct from other discounts like the Veterans Discount or Conversion Discount, which have their own specific eligibility requirements and cannot typically be combined, except under specific circumstances outlined in the FDD.