What is the definition of a 'Franchised Salon' according to the Itan FDD?

According to Itan's 2025 Franchise Disclosure Document, a 'Franchised Salon' is defined as any salon that is owned by a franchisee. This definition is important for understanding the financial performance representations provided in Item 19 of the FDD, as these representations are based on data from Franchised Salons.

This definition distinguishes Franchised Salons from Company-Owned Salons, which are owned by Itan, its affiliates, or individuals listed in Item 2 of the FDD who are involved in managing the salon. The FDD specifies that as of December 31, 2024, there were 28 Franchised Salons in operation and no Company-Owned Salons. This distinction is crucial for prospective franchisees as the financial performance data presented pertains specifically to Franchised Salons.

Understanding the definition of a Franchised Salon helps potential franchisees interpret the financial data accurately and assess the potential performance of their own Itan franchise. It is important to note that the financial performance of Franchised Salons may differ from that of Company-Owned Salons, if any existed, due to variations in operational practices, management styles, and other factors. Therefore, focusing on the data from Franchised Salons provides a more relevant benchmark for prospective franchisees.