Bottom line
- Total investment $280K – $835K including a $50K franchise fee, 6.5% ongoing royalty.
- Average unit revenue of $513K/year (median $497K).
- Rated MODERATE with a risk score of 62/100. SBA loan default rate of 0.0% across 1 loans (below the industry average).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one iTAN unit return on the cash you put in?
Unlevered ROIC · per unit
19%
Below typical band (30–60%)
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
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.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
Item 20 · unit dynamics
The Growth Chart
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 phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
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.
Score breakdown · what drove the 62 / 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
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
34 numbers
One-time purchase · CSV download · Validation questions included
FDD download
iTAN · FDD (2025) PDF