What is the consideration for the Itan addendum agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Background
- 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").
- E. In order to effectuate the conversion of your Current Business to an iTAN Salon, the Parties desire to modify the Franchise Agreement according to the terms and conditions set forth herein.
- F. In consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, and intending to be legally bound, the Parties hereby agree to the terms and conditions set forth below.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the consideration for the addendum agreement involves several elements. The document indicates that the franchisee currently owns and operates a business with services similar to those offered by an Itan salon and desires to acquire an Itan franchise to convert their existing business. Itan is willing to grant the franchisee the right and obligation to do so. The parties are entering into an Itan Franchise Agreement concurrently with the execution of the addendum.
In order to convert the current business into an Itan salon, the parties desire to modify the Franchise Agreement according to the terms and conditions set forth in the addendum. The actual consideration includes the recitals outlined in the background of the addendum and other good and valuable consideration, the receipt and sufficiency of which is acknowledged by both parties. This means that both Itan and the franchisee agree that what they are receiving is adequate and sufficient to make the agreement binding.
This agreement is legally binding. The franchisee is obligated to convert their existing business to an Itan Salon, operating in accordance with Itan's system, which includes tanning, beauty, and wellness services, and selling related retail items under Itan's marks. The addendum modifies the original franchise agreement to facilitate this conversion. The franchisee must adhere to the terms and conditions outlined in the addendum to ensure compliance and a successful conversion. This includes meeting construction and conversion deadlines, potentially modifying the lease for the premises, and adhering to Itan's standards for remodeling and renovation.