What constitutes the 'Development Business' for an Itan area developer?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
"Development Business" means the franchised business you conduct pursuant to this Agreement consisting of developing and opening Salons within the Development Territory.
"Development Fee" means the development fee described in §6 that you must pay us upon execution of this Agreement, and which is deemed to include the initial franchise fee for all Required Salons referred to in the Development Schedule.
"Development Schedule" means the schedule described in §4.1 and Part C of ATTACHMENT "A" for the development of the Required Salons within the Development Territory.
"Development Territory" means the geographic area described in Part D of ATTACHMENT "A".
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the 'Development Business' for an area developer is defined as the franchised business that the developer conducts under the Area Development Agreement. This business specifically involves developing and opening Itan salons within the designated Development Territory.
In simpler terms, an Itan area developer's primary responsibility is to establish new Itan locations within a specific geographic area. This involves site selection, construction, staffing, and all other activities necessary to launch and operate successful Itan salons. The area developer is granted the rights to develop this territory according to a specific Development Schedule.
The Development Schedule, outlined in Section 4.1 and Part C of ATTACHMENT "A", dictates the timeline and number of salons the area developer is obligated to open. The Development Territory, described in Part D of ATTACHMENT "A", defines the geographic boundaries within which the developer has the exclusive right to develop Itan franchises. The Development Fee covers the initial franchise fees for all Required Salons listed in the Development Schedule.