For Itan, what is the definition of 'Transfer'?

According to Itan's 2025 Franchise Disclosure Document, a 'Transfer' encompasses a broad range of actions related to the franchise agreement, franchise rights, the business, the salon's assets, or equity interest in the business. Specifically, it includes any direct or indirect, voluntary or involuntary assignment, sale, conveyance, subdivision, sublicense, or other transfer or disposition of the franchise agreement itself, the rights granted within it, the business operations, the salon's assets (excluding routine sales of fixtures or equipment), or any equity stake in the business or franchisee entity.

This definition is important for prospective Itan franchisees because it clarifies what actions require franchisor approval and what constitutes a breach of the franchise agreement. Transferring any of these aspects without Itan's consent, unless it qualifies as a 'Permitted Transfer', is considered a violation of the agreement and can have serious consequences.

Itan outlines specific conditions that must be met for a transfer to be approved. These include the transferee demonstrating sufficient business experience and financial resources, compliance with existing agreements, completion of training, landlord consent, obtaining necessary licenses and permits, assuming the franchisee's obligations, signing the current franchise agreement, remodeling the salon to current standards, payment of a $10,000 transfer fee, and signing a general release. These conditions ensure that any new franchisee maintains Itan's brand standards and operational quality.

It is also important to note that Itan retains the right of first refusal, meaning they have the option to purchase the franchise themselves before a transfer to a third party can occur. This provision allows Itan to maintain control over its franchise network and ensure that the brand's interests are protected.