What is the definition of an 'Optional Salon' for an Itan area developer?

According to Itan's 2025 Franchise Disclosure Document, an 'Optional Salon' is defined as any salon that the area developer chooses to develop and open within the Development Territory after they have successfully developed and opened all the 'Required Salons'. This option is available during the term of the Area Development Agreement, in accordance with section 4.2 of that agreement. The term 'Optional Salon' does not include any 'Required Salon'.

For a prospective Itan area developer, this means that after fulfilling the initial obligations of developing and opening the number of salons specified in the Development Schedule, they have the opportunity to expand their business further by opening additional salons. However, this is not an obligation, but rather an option that the developer can exercise if they choose to do so.

To be eligible to open an Optional Salon, the area developer must have developed and opened all Required Salons before the expiration of the Area Development Agreement term. Additionally, the area developer and their affiliates must have substantially complied with the Development Schedule and all Definitive Agreements. This implies that adherence to the initial development plan and compliance with all contractual obligations are prerequisites for the option to develop additional salons.