What is the total estimated initial investment for an Itan salon if equipment is leased?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF EXPENDITURE 1 | AMOUNT | METHOD OF | WHEN DUE | TO WHOM PAYMENT IS TO BE MADE |
|---|---|---|---|---|
| PAYMENT | ||||
| Development Fee 18 | $129,500 to $199,500 | Lump sum | At time you sign ADA | |
| Initial Investment to Open First Salon | [If Lease Equipment] $230,694 to $427,064 [If Purchase Equipment] $405,194 to $785,564 | This is the total estimated initial investment in Table A above less initial franchise fee, which is included in development fee. | ||
| Total Estimated Initial | $360,194 to $626,564 (if lease equipment) | |||
| Investment | $534,694 to $985,064 (if purchase equipment) |
| TYPE OF EXPENDITURE 1 | AMOUNT | METHOD OF | WHEN DUE | |
|---|---|---|---|---|
| PAYMENT | ||||
| Lease Deposit 4 | $1,800 to $8,000 | As incurred | Before opening | Landlord |
| Construction 5 | $150,000 to $250,000 | As incurred | Before opening | Architect, contractors & suppliers |
| Signage 6 | $7,000 to $13,000 | Lump sum | Before opening | Suppliers |
| Startup Package 7 | $4,654 to $4,704 | Lump sum | Before opening | Our affiliates |
| Furniture and Fixtures 8 | $12,000 to $20,000 | As incurred | Before opening | Suppliers |
| Technology Systems 9 | $6,240 to $8,860 | Lump sum | Before opening | Suppliers |
| Sun Spray Spa Equipment 10 (lease estimate includes initial payment and first 3 monthly lease payments) | [If Leased] $20,000 to $40,000 [If Purchased] $194,500 to $398,500 | Lump sum or per leasing terms | Before opening (and monthly if you lease the equipment) | Suppliers |
| Initial Supply of Inventory 11 | $7,000 to $10,000 | Lump sum | Before opening | Suppliers |
| Miscellaneous Opening | $1,000 to $2,000 | As incurred | Before opening | Suppliers |
| Costs 12 | ||||
| Grand Opening Marketing 13 | $5,000 to $10,000 | Lump sum | 30 days before through 60 days after opening | Suppliers |
| Utility and Security Deposits | $500 to $4,000 | Lump sum | Before opening | Utility companies |
| Business Licenses & Permits | $1,000 to $3,000 | Lump sum | Before opening | Government agencies |
| Professional Fees 14 | $1,500 to $3,000 | Lump sum | Before opening | Lawyer & accountant |
| Insurance 15 | $500 to $1,000 | Lump sum | Before opening | Insurance companies |
| Additional Funds 16 | $10,000 to $40,000 | As incurred | As incurred | Landlord, suppliers |
| (3 months) | and employees | |||
| Total Estimated Initial | $280,194 to $476,564 (if lease equipment) | |||
| Investment 17 | $454,694 to $835,064 (if purchase lease equipment) |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–18)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the total estimated initial investment to open an Itan salon, if the equipment is leased, ranges from $360,194 to $626,564. This amount encompasses the initial investment to open the first salon ($230,694 to $427,064 when leasing equipment) and the development fee ($129,500 to $199,500). The initial investment to open the first salon is the total estimated initial investment less the initial franchise fee, which is included in the development fee.
It's important to note that this investment covers various expenses, such as lease deposits, construction, signage, startup packages, furniture and fixtures, technology systems, sun spray spa equipment (including initial payment and the first three monthly lease payments), initial inventory, miscellaneous opening costs, grand opening marketing, utility and security deposits, business licenses and permits, professional fees, insurance, and additional funds for the first three months of operation. The cost for sun spray spa equipment when leased is estimated to be $20,000 to $40,000, covering the initial payment and the first three monthly lease payments.
Prospective franchisees should carefully review all components of the initial investment and consider their financial situation before making a decision. It is also recommended to consult with financial advisors and legal professionals to fully understand the financial obligations and potential risks associated with opening an Itan franchise. The FDD advises hiring an accountant, business advisor, or other professional to assist in developing a budget for the construction, opening, and operation of the salon.