Besides the Lanham Act, what law governs the Itan franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **24.1.
Governing Law.** Except as governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. §§ 1051, et seq.), this Agreement and the franchise relationship are governed by the Laws of California without reference to its principles of conflicts of law, but any California Law that regulates the offer and sale of franchises or business opportunities or governs the relationship of a franchisor and its franchisee will not apply unless its jurisdictional requirements are met independently without reference to this Section.
If your Salon is located outside of California, the public policies of the state in which your Salon is located govern the enforceability of noncompetition covenants notwithstanding the California choice of law provision set forth above.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchise agreement and relationship are generally governed by the laws of California, excluding any California laws regulating franchise sales or franchisor-franchisee relationships unless their jurisdictional requirements are independently met. However, if the Itan salon is located outside of California, the enforceability of noncompetition covenants is governed by the public policies of the state where the salon is located, regardless of the California choice of law provision.
This means that while California law generally applies to the Itan franchise agreement, there are exceptions. Specifically, the enforceability of non-compete clauses will be determined by the state in which the salon operates, potentially offering franchisees outside of California more protection against restrictive covenants. Franchisees should be aware that the laws of their state may override the California law specified in the agreement regarding non-competition.
It is important for prospective Itan franchisees to understand which state's laws will govern their franchise agreement, especially concerning non-competition clauses. Franchisees should consult with a legal professional to fully understand their rights and obligations under both California law and the laws of the state in which their salon will operate.