What is the total estimated initial investment for an Itan salon if equipment is purchased?
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) |
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 purchased ranges from $534,694 to $985,064. This figure encompasses the initial investment to open the first salon, excluding the initial franchise fee, which is already factored into the development fee. The development fee itself ranges from $129,500 to $199,500 and is due when signing the Area Development Agreement (ADA).
It's important to note that this investment covers the costs associated with opening the first salon under the ADA. If a franchisee intends to develop more than the initially agreed upon 3 to 5 salons, the development fee will increase accordingly. The FDD also specifies that these estimates assume the salon is not a conversion salon; conversion salons may have lower initial investment costs.
Prospective franchisees should carefully consider whether to lease or purchase equipment, as this decision significantly impacts the initial investment. Itan estimates the cost to purchase all sun, spray, and spa equipment to range from $194,500 to $398,500. The lower end of the equipment purchase estimate assumes a smaller facility with a limited number of spa services. Itan indicates that most franchisees choose to lease the equipment rather than purchase it outright.
It is also important to note that Itan does not offer direct or indirect financing, and no amounts paid to Itan are refundable. Franchisees should consult with financial advisors to explore financing options and develop a detailed budget to manage the initial investment effectively.