Itan Franchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
Analysis by FranchiseVerdict Research · Methodology
iTAN, now EverSun Beauty & Wellness, is a tanning and wellness franchise offering sunbeds, spray tans, red-light therapy, and infrared. Franchisees run the studios, managing memberships, staffing, and equipment.
FranchiseVerdict summary · 2026
A iTAN franchise requires a total initial investment of $280K – $477K, including a $50K franchise fee and an ongoing 6.5% royalty[2]. Per the 2025 FDD, average unit revenue was $513K[2]. FranchiseVerdict grade: A (Strongest tier), an editorial assessment, not investment advice. Run a live ROI scan →
Data last verified · figures per the 2025 FDD issuance
Overview
- Investment
- $280K – $477K
- 30th pct Personal Care…
- Avg gross sales
- $513K
- 12th pct Personal Care…
- Royalty
- 6.5%
- 37th pct Personal Care…
- Units
- 28
- 27th pct Personal Care…
- SBA charge-off
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = favorable by >10% vs Personal Care & Beauty avg · No shading = within ±10% · Red = unfavorable by >10% · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Bottom line
- COSTTotal investment $280K – $477K including a $50K franchise fee, 6.5% ongoing royalty.
- RETURNSAverage unit revenue of $513K/year (median $497K).
- RISKVerdict A (Strongest tier), verdict score 70/100 (higher is better).
Item 1 · who you're contracting with
The Franchisor
Corporate structure & franchisor financials
- Legal entity
- iTAN Franchising, Inc.
- Ultimate parent
- None
- CEO title
- Chief Executive Officer
- Faraje Kharsa
- CEO experience
- 2008 yrs
- Years in role or industry
- Founder active
- Yes
- Original founder still leading the business
- Incorporated in
- CA
- HQ
- 1784 La Costa Meadows Dr., #101, San Marcos, California 92078
- Auditor
- Considine & Considine
- Audited financials
- Franchisor revenue
- $908K
- vs $908K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
- CEO
- Faraje Kharsa
- Headquarters
- CA
- Founded
- 2008
- FDD year
- 2025
- States available
- 1
Can you afford it, and what does the money buy?
Entry cost runs 28% below the typical personal care & beauty franchise.
Source: FDD 2025 · Items 5–7
Full Item 7 breakdown19 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Initial Franchise Feenot refundable | $50K | $50K | |
| Initial Training Expensesnot refundable | $3K | $10K | |
| Lease Deposit | $2K | $8K | |
| Constructionnot refundable | $150K | $250K | |
| Signagenot refundable | $7K | $13K | |
| Startup Packagenot refundable | $5K | $5K | |
| Furniture and Fixturesnot refundable | $12K | $20K | |
| Technology Systemsnot refundable | $6K | $9K | |
| Sun Spray Spa Equipment (Leased)not refundable | $20K | $40K | |
| Sun Spray Spa Equipment (Purchased)not refundable | $195K | $399K | |
| Initial Supply of Inventorynot refundable | $7K | $10K | |
| Miscellaneous Opening Costsnot refundable | $1K | $2K | |
| Grand Opening Marketingnot refundable | $5K | $10K | |
| Utility and Security Deposits | $500 | $4K | |
| Business Licenses & Permitsnot refundable | $1K | $3K | |
| Professional Feesnot refundable | $2K | $3K | |
| Insurancenot refundable | $500 | $1K | |
| Additional Funds (3 months)not refundable | $10K | $40K | |
| Development Fee (Area Development - 3 to 5 Salons)not refundable | $130K | $200K | |
| Total initial investment | $604K | $1.1M |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $280K – $477K
- Top 40% of category vs category
- Liquid capital req'd
- $10K – $40K
- Top 40% of category vs category
- Franchise fee
- $50K – $50K
- Top 40% of category vs category
- Royalty
- 6.5%
- percentage · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 0.1%
- vs 9–13% typical
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 6.5% of gross sales |
| Marketing / ad fund | 2.0% of gross sales |
| Technology fee | $80 |
| Training fee | $2K |
| Transfer fee | $10K |
| Renewal fee | $1K |
| Inventory (initial) | $7K – $10K |
| Total fee load | 0.1% of rev |
A 0.1% total fee load is unusually lean. More of each revenue dollar stays with the franchisee.
What do units actually make?
Average unit sales run 36% below the personal care & beauty norm.
Source: FDD 2025 · Item 19
Single-unit · estimated
Returns at a glance
Indicative numbers using FDD Item 7 / Item 19 inputs and category-benchmarked cost ratios. Full single-unit, 25-unit portfolio, and LBO models (with every input editable to stress-test your own scenario) live on the financials page.
Store EBITDA · annual
$110K
21.5% margin
Unlevered ROIC
27%
EBITDA / total invested capital
Payback
3.7 yrs
cash-on-cash, unlevered
ROI & LBO modelsSingle-unit · 25-unit portfolio · editable
What one unit earns on your invested capital
Model A · Single-Unit Return
Computes unlevered return on invested capital (ROIC) for a single franchise unit. The target band for an attractive franchise is 30–60% ROIC. Below that and a passive index fund likely outperforms; above that and the franchisor has pricing power you're subsidizing.
Note: Item 19 revenue is what the franchisor discloses. It's the top line only. Operating costs below are category estimates. Override them to match your real lease quote, labor market, and build-out budget.
Returns model · single-unit ROIC
What would one iTAN unit return on the cash you put in?
Unlevered ROIC · per unit
Estimated return on your total franchise investment, before any debt financing.
27%
Below the 30–60% attractive-franchise band
What 25 units return when you use SBA financing
Model B · Return on Equity: Debt-Financed Acquisition
Models a 25-unit portfolio acquisition financed with an SBA 7(a) loan. Shows equity IRR (your return on cash invested), DSCR (how safely the cash flow covers debt service), and the capital stack (SBA + seller + equity breakdown).
This is the “search fund” or “entrepreneurship through acquisition” scenario: you buy an existing multi-unit operator, use leverage to amplify returns, and either operate or hire management. The 25-unit size is the typical minimum for an SBA-backed franchise portfolio acquisition to pencil as a full-time income.
What “return on equity” means here: if you put in $500K of your own cash and the business generates enough EBITDA to pay down debt and grow, your equity IRR is the annual return on that $500K, including the value created when you eventually sell. Target IRR for a search fund is typically 25–35%.
Levered LBO scenario · Yale Crease Capital framing
What would 25 iTAN units return on equity?
Equity IRR · 5-yr
49.9%
7.57× MOIC
Year-1 DSCR
1.88×
EBITDA ÷ debt service
Equity required
$1.5M
on $7.4M purchase
Total debt
$5.9M
SBA $3.7M + senior + seller note
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2025 FDD
Financial Performance
- Avg gross sales
- $513K
- Per unit, per year
- Median gross sales
- $497K
Gross sales are revenue before expenses — not profit. Actual owner earnings depend on rent, labor, royalties, marketing fees, and debt service.
- Item 19 type
- gross sales and expenses
- Sample size
- 28 outlets
- vs category median 38
- Range (low → high)
- $207K→$769K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Source filing
- FDD 2025
- Disclosed in the 2025 filing, covering 2024
- Transparency
- 7 / 10
- vs category median 4 / 10 · above
Compared against 179 Personal Care & Beauty brands
Operator outlook
What the numbers say
Data-driven interpretation of this brand's financial disclosures, fee structure, and system trajectory.
Unit economics
Average unit generates $513K/year in gross sales. Revenue-to-investment ratio: 1.4x.
Fee burden
Total ongoing fee load of 0.1% — below the Personal Care & Beauty average of 7.8%.
Disclosure
Transparency score 7/10 — this franchisor discloses detailed breakdowns (quartiles, segments, or cohort data). Buyers can model unit economics with higher confidence.
Operator retention
System expanding at 7.7% CAGR over 3 years across 28 units — operators are staying and new ones are joining.
Source: FDD Item 19 financial performance representations and publicly filed FDD data. Past performance is not indicative of future results. Verify all figures with the franchisor and current franchisees before making any investment decision.
vs Personal Care & Beauty averages
How Itan Compares
Is the system healthy?
Source: FDD 2025 · Item 20
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 28
- Opened
- 5
- Last reporting year
- Closed
- 1
- Terminated
- 0
- Franchisor ended the franchise (per Item 20)
- Non-renewed
- 0
- Term expired, not renewed (per Item 20)
- Turnover rate
- 3.6%
- Company-owned
- 0
- Corporate units in the system
- % franchised
- 100%
- vs corporate-owned
- Net growth (3-yr)
- +7.7%
- Net unit change over 3 years
- 3-yr CAGR
- +7.7%
- Compounded over last 3 years
3-year detail · Item 20
- Opened (3yr)
- 5
- Closed (3yr)
- 1
- Terminated (3yr)
- 0
- Non-renewed (3yr)
- 0
- Transfers (3yr)
- 0
- Reacquired (3yr)
- 0
- Franchisor bought back
- Projected new
- 3
- Franchisor's next-year forecast
- Ceased ops
- 21.4%
- Units that stopped operating
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 12 · 1 state reported
The Territory Map
FDD Item 12 reports the state count, but the specific list isn't in our current data. The map will appear once we re-extract from the FDD or enough franchisee contacts are available.
1
states with franchisees (per FDD Item 12)
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA loan disclosures. This brand has only 1 7(a) loan on file; statistical reliability is limited below 10 loans.
- Total loans
- 1
- Loan volume
- $264K
- Median loan
- $264K
- average
- Charge-off rate
- N/A
- limited sample (1 loan) — rate not shown below 10
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- N/A
- 5-yr charge-off
- N/A
- Loans approved 2021+
- Active lenders
- 1
- Defaults
- N/A
Explore lender portfolios on Bank Reports or regional data on State Reports.
What could kill this investment?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Risk analysis
FranchiseVerdict rating + FDD Items 3, 4, 8, 16, 21
Risk & Legal
iTAN presents caution-level risk due to opaque profitability metrics, going concern status, and inability to validate franchise viability against the substantial capital investment required.
Litigation (Item 3)
No litigation required to be disclosed
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Considine & Considine
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: Yes
- Kickbacks from required suppliers: No
- Must buy proprietary products: Yes
- Restricted to system-approved products: Yes
- Can negotiate own supplier terms: No
Score breakdown · what drove the 70 / 100 verdict
- 01HIGHGoing Concern status is False — indicates potential financial instability or restructuring risk at franchisor level
- 02MEDNet income not disclosed — inability to assess actual franchisee profitability; gross revenue alone is insufficient for ROI validation
- 03MEDModest unit growth of 16.7% YoY with only 28 total units suggests limited scale and market traction
- 04MINOR6.5% royalty on gross sales is standard but becomes problematic if net margins are compressed
Severity inferred from the FDD text · not a regulatory classification
What are you signing up for?
Ongoing fees run about 0.1% of sales (royalty + ad fund), before rent and labor.
Source: FDD 2025 · Items 11, 12, 17
FDD Items 12, 15, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | protected |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 50,000 |
| Online sales rightsℹ | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Optional |
| Non-compete (years)ℹ | 2 years |
| Non-compete (miles)ℹ | 10 mi |
| Right of first refusalℹ | Yes |
| Transfer requires consent | Yes |
| Termination notice | 30 days |
| Mandatory arbitration | No |
| Arbitration location | San Diego County, California (mediation/litigation) |
| Jury trial waiver | No |
| Governing law | CA |
| Litigation count | 0 |
View Item 3 litigation summary
No litigation required to be disclosed
Items 10, 11
Training & Operations
- Classroom training
- 80 hrs
- On-the-job training
- 80 hrs
- Training location
- Remote (virtual) and designated training facility in San Diego, California; onsite at franchisee's Salon
- Ongoing training
- Required
- Field support
- 80 hrs/yr
- On-site visits per year
- Time to open
- 9 mo
- From signing to launch
- Site selection
- Franchisee selects; franchisor must approve
- Franchisor financing
- Not offered
- Item 10
- POS system
- Helios 12
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Helios 12
Item 20 · call current owners
Franchisee Contacts
30 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
iTAN · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a iTAN franchise?
The total investment to open a iTAN franchise ranges from $280K – $477K, with an initial franchise fee of $50K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do iTAN franchise owners earn?
According to Item 19 of the iTAN FDD, the average gross sales per unit is $513K. The median is $497K. Note: this is gross revenue, not profit. Actual owner earnings vary based on location, operating costs, and management.
What is Item 19 in the iTAN FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the iTAN FDD and qualifies whose outlets they describe.
What is iTAN's franchise failure rate?
SBA 7(a) loan charge-off data is not available for iTAN (fewer than 10 loans on file). Charge-off rates are one way to gauge franchise risk, but not all franchise loans go through the SBA program. We recommend reviewing turnover and closure data in the FDD and speaking with current franchisees.
How many iTAN franchise locations are there?
As of their most recent FDD filing, iTAN has 28 total units in the United States, including 28 franchised units and 0 company-owned units. 5 new units were opened in the latest reporting year.
Is iTAN a good franchise to buy?
FranchiseVerdict rates iTAN as a A-grade franchise with a verdict score of 70 out of 100 (higher is better), based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
For franchisors
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If you represent iTAN, you can request corrections or provide updated information.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.