Under what condition is the development fee imposed for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
alon in excess of 7) |# Development Fee
If you acquire area development rights, you pay us a nonrefundable development fee at the time you sign the ADA. The development fee is calculated as the sum of all initial franchise fees for all Salons you commit to develop under the ADA. The initial franchise fees imposed under the ADA are the same as those discussed above under the Multi-Unit Discount. We expect most area developers will purchase the right to develop between 3 and 5 Salons, which requires a development fee of $129,500 (for 3 Salons) or $199,500 (for 5 Salons). The development fee is deemed to satisfy the initial franchise fee for each Salon you are required to develop under the ADA.
The Conversion Discount does not apply to any Salons developed under an ADA. If you qualify for the Veterans Discount, you receive a $4,950 discount off of your development fee. Development fees are uniformly imposed except as oth
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a development fee is imposed when a franchisee acquires area development rights. This fee is paid at the time the Area Development Agreement (ADA) is signed and is nonrefundable. The development fee is calculated as the sum of all initial franchise fees for all salons the franchisee commits to develop under the ADA.
Itan expects that most area developers will purchase the right to develop between 3 and 5 salons. This would require a development fee of $129,500 for 3 salons or $199,500 for 5 salons. The development fee satisfies the initial franchise fee for each salon required to be developed under the ADA.
It is important to note that the Conversion Discount does not apply to any salons developed under an ADA. However, if a franchisee qualifies for the Veterans Discount, they will receive a $4,950 discount off of their development fee. The development fees are uniformly imposed, with the exception of the Veterans Discount.