According to the addendum, what must an Itan franchisee currently own and operate?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. You currently own and operate a business (the "Current Business") from the premises located at the address listed in Part A of Attachment A to this Addendum (the "Premises").
- B. The Current Business offers services that are similar to the services offered by an iTAN salon.
- C. You desire to acquire an iTAN franchise for purposes of converting your Current Business to an iTAN Salon and we are willing to grant you the right and obligation to do so.
- D. Concurrently with the execution of this Addendum, the Parties are entering into an iTAN Franchise Agreement (the "Franchise Agreement"), pursuant to which we will grant you the right and obligation to convert the Current Business to an iTAN Salon that operates in accordance with our System and features tanning, beauty and wellness services (e.g., FIT Bodywrap®, aqua massage, teeth whitening, salt therapy, photo light therapy and other approved services) and sells related retail items under our Marks (your "ITAN Salon").
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the addendum specifies that a franchisee must currently own and operate a business to be eligible for converting it into an Itan salon. This existing business, referred to as the "Current Business," must be located at a specific address detailed in Attachment A of the addendum.
The addendum indicates that the services offered by the Current Business should be similar to those provided by an Itan salon. This suggests that Itan is targeting existing businesses in the tanning, beauty, and wellness sector for franchise conversions. The intention is for the franchisee to convert their Current Business into an Itan Salon, offering services such as tanning, beauty and wellness services (e.g., FIT Bodywrap®, aqua massage, teeth whitening, salt therapy, photo light therapy and other approved services) and selling related retail items under Itan's brand.
This conversion process is formalized through a Franchise Agreement, which grants the franchisee the right and obligation to operate the converted business according to Itan's System. The addendum serves to modify the standard Franchise Agreement to accommodate the specific circumstances of converting an existing business, outlining the terms and conditions for this conversion. This approach allows Itan to expand its franchise network by leveraging existing businesses and infrastructure, potentially reducing startup costs and time for the franchisee.