In the context of the Itan franchise agreement, what happens to capitalized terms not defined in the addendum?

According to Itan's 2025 Franchise Disclosure Document, if a capitalized term is not defined within a specific addendum to the Franchise Agreement, it will carry the meaning assigned to it in the main Franchise Agreement. This ensures consistency and clarity across all documents governing the franchise relationship. This is particularly relevant when an existing business is converted into an Itan salon, as outlined in the sample addendum.

For a prospective Itan franchisee, this means that understanding the definitions in the core Franchise Agreement is crucial. Franchisees should carefully review the Franchise Agreement to familiarize themselves with the meaning of capitalized terms, as these definitions will apply to any addenda unless explicitly redefined within that addendum. This avoids confusion and ensures that both Itan and the franchisee operate under the same understanding of key terms.

This approach is fairly standard in franchising, where numerous addenda or supplemental agreements might be attached to the main franchise agreement. By referencing the main agreement for undefined terms, Itan maintains a consistent framework while allowing for specific modifications or additions through the addenda. Franchisees should pay close attention to which document takes precedence in case of conflicts, as specified within each addendum.