ItanFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A iTAN franchise requires a total initial investment of $280K – $835K, including a $50K franchise fee and an ongoing 6.5% royalty[2]. Per the 2025 FDD, average unit revenue was $513K[2]. Verdict grade: A. Run a live ROI scan →
Data last verified June 21, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $280K – $835K
- 27th pct Personal Care…
- Avg gross sales
- $513K
- 14th pct Personal Care…
- Royalty
- 6.5%
- 26th pct Personal Care…
- Units
- 28
- 22nd pct Personal Care…
- SBA default
- N/A
Quick verdict · Personal Care & Beauty · color = vs category peers
Green = >15% above Personal Care & Beauty avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
The system grew 17% year-over-year. Fast growth means demand, but can strain support.
Bottom line
- Total investment $280K – $835K including a $50K franchise fee, 6.5% ongoing royalty.
- Average unit revenue of $513K/year (median $497K).
- Verdict A (Top Quintile) with a risk score of 44/100.
Item 1 · who you're contracting with
The Franchisor
- 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
- $769K
- vs $908K prior year
- Management churn noted
- Frequent turnover
- Item 2 disclosed frequent executive changes
Overview
About
iTAN appears to be a tanning salon franchise where franchisees operate retail locations offering spray tans, UV tanning beds, and related beauty services. Day-to-day operations involve managing staff, maintaining equipment, serving walk-in and appointment clients, managing inventory of tanning solutions, and ensuring facility cleanliness and compliance with health regulations.
- CEO
- Faraje Kharsa
- Headquarters
- CA
- Founded
- 2008
- FDD year
- 2025
- States available
- 1
FDD Item 7 · 2025 filing · 19 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.
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
19%
EBITDA / total invested capital
Payback
5.3 yrs
cash-on-cash, unlevered
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $280K – $835K
- Better than avg vs category
- Liquid capital req'd
- $10K – $40K
- Better than avg vs category
- Franchise fee
- $15K – $50K
- Better than avg vs category
- Royalty
- 6.5%
- Gross Sales · typical 6–8%
- Ad fund
- 2.0%
- typical 3–5%
- Total fee load
- 8.5%
- 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 | $200 |
| Training fee | $2K |
| Transfer fee | $10K |
| Renewal fee | $1K |
| Total fee load | 8.5% of rev |
Financial Performance
- Avg gross sales
- $513K
- Per unit, per year
- Median gross sales
- $497K
- Item 19 type
- gross_sales
- Sample size
- 28 units
- vs category median 35
- Range (low → high)
- $207K→$769K
- Cohort dispersion (min → max)
- Reporting year
- 2024
- Fiscal year the figures cover
- Transparency
- 7 / 5
- vs category median 4 / 5 · above
Compared against 186 Personal Care & Beauty brands
Revenue is only 0.9x the investment. This means each unit may take 5+ years to recoup the initial outlay at typical margins.
vs Personal Care & Beauty averages
How Itan Compares
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 (yr3)
- +16.7%
- Net unit change last year
- 3-yr CAGR
- +7.7%
- Compounded over last 3 years
3-year detail · Item 20
- Transfers (3yr)
- 0
- 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 20 · 7 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
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
- N/A
- Amount data pending
- Median loan
- N/A
- Charge-off rate
- N/A
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
- 0
- Defaults
- 0
Explore lender portfolios on Bank Reports or regional data on State Reports.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
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 44 / 100 rating
- 01MEDNo Item 19 (Average Unit Volume) disclosed — cannot verify if $512,926 avg revenue supports profitability against $280k-$835k investment range
- 02HIGHGoing Concern status is False — indicates potential financial instability or restructuring risk at franchisor level
- 03MEDNet income not disclosed — inability to assess actual franchisee profitability; gross revenue alone is insufficient for ROI validation
- 04MEDModest unit growth of 16.7% YoY with only 28 total units suggests limited scale and market traction
- 05MINORHigh investment ceiling ($835,064) creates significant capital requirement and extended breakeven risk if $512,926 revenue doesn't translate to net profit
- 06MINOR6.5% royalty on gross sales is standard but becomes problematic if net margins are compressed
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 10 years |
|---|---|
| Renewal term | 5 years |
| Allowed renewalsℹ | 2 |
| Territory type | Population |
| Protected territory | Yes |
| Exclusive territoryℹ | No |
| Territory population | 50,000 |
| Online sales rights | Restricted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| 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 |
| Jury trial waiver | Yes |
| Governing law | California |
| 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
- San Diego, California
- Ongoing training
- Required
- Field support
- 80 hrs/yr
- On-site visits per year
- POS system
- Helios
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: Helios
Item 20 · call current owners
Franchisee Contacts
34 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 – $835K, 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 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 26 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 risk score of 44 out of 100, 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.
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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.