What is the definition of a 'Required Salon' under the Itan area development agreement?

According to Itan's 2025 Franchise Disclosure Document, a 'Required Salon' is defined as each salon referenced in the Development Schedule that the area developer is required to develop and open during the term of the area development agreement. The term 'Required Salon' does not include any Optional Salon.

This means that as an Itan area developer, you are obligated to open the salons listed in the Development Schedule attached to your agreement. These salons are not optional; you must adhere to the opening dates specified in the schedule. Failing to meet these development obligations could constitute a material breach of the area development agreement.

It is important to note that the opening date listed in the Development Schedule for a Required Salon may be earlier than the opening date required under the associated Franchise Agreement. Therefore, you must open each Required Salon by the date listed in the Development Schedule, even if it is earlier than what the Franchise Agreement stipulates. However, if a Force Majeure event occurs, preventing you from opening a Required Salon on time, the opening date may be extended for a reasonable period, not exceeding 180 days, depending on the nature of the event.