What constitutes an 'Equity Interest' in the context of an Itan franchise?

According to Itan's 2025 Franchise Disclosure Document, an 'Equity Interest' in the context of the franchise refers to any direct or indirect ownership stake in the business or the franchisee entity. This definition is relevant when discussing transfers of ownership.

Specifically, the FDD states that a 'Transfer' includes any direct or indirect, voluntary or involuntary, assignment, sale, conveyance, subdivision, sublicense, or other transfer or disposition of several items. These items include the Franchise Agreement itself, the franchise or intellectual property rights granted by the agreement, the business conducted under the agreement, the salon's assets (excluding the sale of fixtures or equipment in the ordinary course of business), or an Equity Interest in the Business or Franchisee Entity.

Itan requires approval for all individuals who possess an Equity Interest in the Business or Franchisee Entity. Furthermore, if a franchisee is an Owner, they are prohibited from transferring an Equity Interest in the Business or Franchisee Entity unless it is done in accordance with Section 19 of the Franchise Agreement. This indicates that any change in ownership, whether direct or indirect, is subject to the franchisor's approval and specific terms outlined in the agreement.