How will Itan define my exclusive territory in the Site Approval Notice?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
nt you a territory (your "Territory") that includes a minimum population of 50,000 as of the date the Territory is determined. We do not modify your Territory based on population changes during the Term. If we approve the site for your Salon before signing this Agreement, we will describe your Territory in Part E of ATTACHMENT "A". Otherwise, we will describe
your Territory in the Site Approval Notice we send to you after approving your site. During the Term we will not develop or operate, or license a third party to develop or operate, a Salon that is located in the Territory except as otherwise provided in this Section with respect to Acquisitions. At any time during the Term we reserve the right to engage in Acquisitions that involve, or subsequently result in, conversion of the acquired or acquiring company's outlets to ITAN™ Salons, even if those outlets are located in your Territory. We reserve the right to sell, and license third parties to sell, competitive or identical goods and services (including under the Marks) within the Territory through Alternative Channels of Distribution.
4. TERM AND RENEWAL.
- 4.1. Generally. This Agreement grants you the right to operate your Salon during the Term. You may renew your franchise rights by signing a Successor Agreement for a five (5) year renewal term. You may enter into a maximum of two (2) Successor Agreements.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if the site for your salon is not approved before signing the Franchise Agreement, Itan will describe your territory in the Site Approval Notice sent after approving your site. The Site Approval Notice is attached as ATTACHMENT "B" to the agreement.
Itan specifies that during the term of the agreement, they will not develop, operate, or license a third party to develop or operate a salon within your territory, except in cases of acquisitions. Itan retains the right to engage in acquisitions that may involve converting acquired companies' outlets to Itan salons, even if these outlets are located within your territory. Additionally, Itan reserves the right to sell and license third parties to sell competitive or identical goods and services, including those under Itan's marks, within your territory through alternative channels of distribution.
It is important to note that Itan does not modify your territory based on population changes during the term of the agreement. If the site is approved before signing the agreement, the territory will be described in Part E of ATTACHMENT "A". The boundaries of your territory will remain as they were on the effective date of the agreement, even if the overall boundaries change during the term. The territory will be defined by the geographic area and may be depicted on a map attached to the agreement.