What is the deadline for an Itan franchisee to send notice of intent to enter into a Successor Agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ent territory guidelines and criteria. If this Agreement is a Successor Agreement, the Term of this Agreement and your remaining renewal rights, if any, shall be governed by your original franchise agreement
- 4.2. Renewal Requirements. In order to renew, you and the Owners (as applicable) must:
- (a) send us a notice of your intent to enter into a Successor Agreement not less than 240 days nor more than one (1) year before the expiration of the Term or renewal term, as applicable;
- (b) not be in default under any Definitive Agreement at the time you send the renewal notice or sign the Successor Agreement;
- (c) sign the Successor Agreement and all ancillary documents we require franchisees to sign;
- (d) sign a General Release;
- (e) pay us a $1,000 renewal fee;
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an Itan franchisee must send a notice of intent to enter into a Successor Agreement no less than 240 days and no more than one year before the expiration of the current term. This timeframe is crucial for franchisees who wish to renew their franchise rights for an additional five-year term, with a maximum of two such renewals possible. The Successor Agreement will be based on Itan's current franchise agreement form at the time of renewal, which may differ significantly from the original agreement.
Missing this deadline could prevent a franchisee from renewing their agreement. It is important to note that sending the notice is only one of several requirements for renewal. The franchisee must also not be in default, sign the Successor Agreement and related documents, provide a general release, pay a $1,000 renewal fee, remodel the salon to meet current standards, and extend the lease for the renewal term.
Itan retains the right to modify the franchisee's territory upon renewal based on its then-current territory guidelines. If the current agreement is already a Successor Agreement, the terms of the original franchise agreement will dictate the term and any remaining renewal rights. Therefore, franchisees should carefully track their agreement's expiration date and plan well in advance to meet all renewal requirements.