What is the dependency for an Itan franchisee to be able to open an Optional Salon?

According to Itan's 2025 Franchise Disclosure Document, an Itan franchisee's ability to open an Optional Salon is contingent upon specific conditions being met. The franchisee must first develop and open all Required Salons as stipulated in the Development Schedule before the expiration of the agreement's term. Furthermore, the franchisee and their affiliates must have substantially complied with both the Development Schedule and all Definitive Agreements.

If these conditions are satisfied, the franchisee then has the option, but not the obligation, to develop one or more additional salons, referred to as "Optional Salons," within the designated Development Territory during the remaining term of the agreement. This provides an opportunity for expansion beyond the initial requirements, but it is not mandatory.

This clause in the franchise agreement serves as an incentive for franchisees to meet their initial development obligations promptly and in accordance with the agreed-upon terms. By successfully fulfilling these requirements, franchisees gain the flexibility to further expand their Itan business within their territory, potentially increasing their revenue and market presence. However, failure to meet the initial obligations would preclude them from pursuing these additional expansion opportunities.