In the context of the Itan Franchise Owner Agreement, what does 'Development Agreement' refer to?

According to Itan's 2025 Franchise Disclosure Document, the 'Development Agreement' refers to the Area Development Agreement. This agreement outlines the terms under which a franchisee, as an area developer, is granted the right and obligation to develop, open, and operate multiple Itan salons within a specific Development Territory.

The Development Agreement specifies key aspects such as the Development Schedule, which details the timeline for opening Required Salons, and the Development Fee, which covers the initial franchise fees for these salons. The agreement also grants the franchisee the option to open Optional Salons, provided they have met the obligations for the Required Salons. The Development Territory defines the geographic area where the franchisee can develop these salons.

This agreement does not grant the franchisee any rights to Itan's intellectual property. It also includes territorial protections, preventing Itan from opening or licensing other salons within the Development Territory, with certain exceptions for existing salons or those resulting from acquisitions. The franchisee must adhere to the Development Schedule and other obligations outlined in the agreement to maintain their development rights.