Where are the boundaries of the development territory identified in the Itan Area Development Agreement (ADA)?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
then-current territory guidelines and criteria.
Description of Development Territory (ADA)
If you acquire area development rights, we will identify the boundaries of your development territory in Part D of ATTACHMENT "A" to your ADA. A development territory typically consists of a geographic area that coincides with the boundaries of a municipality, such as a city, county or state. However, we may define a development territory in any other manner we deem appropriate, such as by map, zip codes, designated market areas, etc. There is no specific minimum or maximum size for a development territory. In determining the size of your development territory, we primarily consider the number of Salons you commit to develop.
You must sign a separate Franchise Agreement for each Salon you develop. All Salons you develop must be located in your development territory. We must approve the site for each Salon you develop under our thencurrent site selection criteria. We send you a complete execution copy of the ADA that includes your development territory, development fee and development schedule at least 7 days before you sign it.
Territorial Protections and Limitations
During the term of your Franchise Agreement we will not develop or operate, or license a third party to develop or operate, a Salon using our Marks that is located in your territory except as otherwise permitted below with respect to Acquisitions (defined below).
During the term of the ADA we will not develop or operate, or license a third party to develop or operate, a Salon using our Marks that is located in your development territory other than: (a) any Salon that is located in your development territory as of the date you sign the ADA (either open, under construction or for which a Franchise Agreement has been signed); and (b) as otherwise permitted below with respect to Acquisitions.
Source: Item 12 — TERRITORY (FDD pages 31–33)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the boundaries of a development territory are identified in Part D of ATTACHMENT "A" to the Area Development Agreement (ADA). The development territory typically consists of a geographic area that coincides with the boundaries of a municipality, such as a city, county, or state. However, Itan can define a development territory in any other manner they deem appropriate, such as by map, zip codes, or designated market areas.
There is no specific minimum or maximum size for a development territory. Itan primarily considers the number of Salons the franchisee commits to develop when determining the size of the development territory. The franchisee must sign a separate Franchise Agreement for each Salon they develop, and all Salons must be located within the development territory. Itan must approve the site for each Salon under their then-current site selection criteria.
Itan sends a complete execution copy of the ADA that includes the development territory, development fee, and development schedule at least 7 days before the franchisee signs it. During the term of the ADA, Itan will not develop or operate, or license a third party to develop or operate, a Salon using their Marks that is located in the development territory, with certain exceptions for Salons already in the territory or acquisitions. Itan reserves the right to acquire, or be acquired by, another business or chain that may sell competitive or identical goods or services, and those businesses may be converted into Salons operating under the Marks regardless of their location, even within the development territory.