According to Itan, what does site approval mean?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1. Site Selection. You must identify and obtain our approval of the site for your Salon within 90 days after the Effective Date. The site must be located in the Site Selection Area and conform to our minimum site selection criteria. You must send us a complete site report that includes all documents, information, photos and video we require. We may accept or reject sites you propose in our commercially reasonable judgment. We try to notify you of our decision within 30 days after we receive all requisite materials. Your site is deemed disapproved if we do not issue our approval within the 30-day period. If we approve the site for your Salon before signing this Agreement, we will list the address of your approved site in Part D of ATTACHMENT "A". Otherwise, we list the address of your approved site in a Site Approval Notice we send to you within 15 days after approving your site. Within five (5) business days after we send you the Site Approval Notice, you must sign and date the franchisee acknowledgment section and send us a copy for our records. Our approval of the site and designation of your Territory is immediately effective and binding on you at the time we issue the Site Approval Notice even if you do not send us a signed acknowledgment. Our approval of a site is not a representation or warranty of any kind, express or implied, of the suitability of the site for a Salon. It only means we believe the site meets our minimum criteria.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, site approval signifies that Itan believes the location meets their minimum criteria for a salon. It is important to note that Itan's approval does not constitute a representation or warranty regarding the site's suitability for an Itan salon.
The franchisee is responsible for identifying a site within the designated Site Selection Area that meets Itan's criteria. This involves submitting a comprehensive site report with all required documentation, information, photos, and videos. Itan then has the discretion to approve or reject the proposed site based on their commercially reasonable judgment. Itan aims to notify the franchisee of their decision within 30 days of receiving all necessary materials; failure to do so within this timeframe results in the site being deemed disapproved.
Within 15 days of Itan's site approval, they will send a Site Approval Notice to the franchisee, and the franchisee must acknowledge receipt within five business days. Site approval and territory designation become effective and binding upon issuance of the Site Approval Notice, regardless of whether the franchisee returns a signed acknowledgment. The franchisee is also typically required to secure a lease and ensure the landlord signs Itan’s Lease Addendum. The franchisee and landlord must sign the lease and Lease Addendum within 60 days after Itan approves the site.