What constitutes 'Prohibited Activities' for an individual associated with an Itan franchise?

According to Itan's 2025 Franchise Disclosure Document, 'Prohibited Activities' are specifically defined in relation to protecting the brand and preventing unfair competition. These activities include owning, operating, or having any interest in a competing business. The only exception to this is owning less than 5% of the equity interests in a competing business that is a publicly-traded company.

Additionally, 'Prohibited Activities' encompass actions that could harm Itan's reputation or business interests. This includes disparaging or making negative comments about Itan, its affiliates, the Itan system, or any Itan salon. It also includes diverting business away from Itan, its affiliates, or other franchisees, as well as inducing individuals to transfer their business from an Itan salon to a competitor.

It is important to note that these restrictions apply not only to franchisees but also to their employees and independent contractors, ensuring a comprehensive approach to protecting Itan's interests. Understanding these 'Prohibited Activities' is crucial for anyone associated with an Itan franchise to avoid potential breaches of the franchise agreement and possible legal ramifications.