What is the transfer fee for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
cts marketing services for all franchisees. The Company has discretion as to how the funds are spent, provided the funds are spent in accordance with the franchise agreements. The Company recognizes marketing fund fees as revenue at the time the underlying sales occur.
Initial franchise fees - Initial franchise fee revenues are recognized when the Company satisfies performance obligation by providing services to the franchisee. These services include support for site selection, architectural plans, interior and exterior design and layout, training, marketing and sales techniques and pre-opening assistance. All services are substantially provided at the time of the location opening.
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Royalty fee income - The Company is entitled to a percentage of sales generated by each franchise location. Royalty fee revenues are recorded as revenues are earned by the franchise locations.
Membership and technology service fees -
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the company generates revenue from salon transfer fees. These fees are recorded when an existing franchise location is sold or transferred to another person or entity, with Itan's approval required for all such transfers. While the document confirms that Itan collects these fees, the specific amount of the transfer fee is not disclosed in this section.
However, the document does mention other fees collected from franchisees, such as technology fees ($30 per salon per month), EFT services ($10 per salon per month), and SharePort license fees ($4-$20 per user per month). There is also a franchise renewal fee of $1,000 due at renewal. These fees provide additional context regarding the types of ongoing costs franchisees can expect.
Prospective Itan franchisees should inquire directly with the franchisor to obtain precise details regarding the transfer fee, including how it is calculated and under what circumstances it may be applicable. Understanding the transfer fee is crucial for financial planning, especially for franchisees considering selling their business in the future.