How does Itan define 'Acquisition' in the context of the franchise agreement?

According to Itan's 2025 Franchise Disclosure Document, Itan retains the right to engage in acquisitions that may impact a franchisee's territory. Specifically, Itan reserves the right to pursue acquisitions that involve converting the acquired company's outlets into Itan salons, even if these outlets are located within a franchisee's designated development territory.

This clause in the franchise agreement means that while Itan grants a development territory, it retains the flexibility to expand its brand through acquisitions, potentially leading to Itan locations within a franchisee's protected area. This could introduce competition within the franchisee's territory that they might not have anticipated based solely on the territorial protections outlined in the agreement.

For a prospective Itan franchisee, this is a critical consideration. While the development agreement offers certain territorial protections, these protections are not absolute. The franchisee should carefully evaluate the potential for Itan to establish additional locations within their territory through acquisitions and understand the potential impact on their business. It is important to discuss this with Itan to understand their acquisition strategy and how it might affect the franchisee's investment.