What determines the 'Term' of the Itan area development agreement?

According to Itan's 2025 Franchise Disclosure Document, the 'Term' of the Area Development Agreement is defined as the period that starts on the agreement's effective date and ends on the earlier of two possible dates. These dates are (a) the opening date listed in the Development Schedule for the last Required Salon the developer is obligated to open, or (b) the date the Area Development Agreement is effectively terminated.

For a prospective Itan area developer, this means the agreement's duration is tied to their commitment to open a certain number of salons as per the Development Schedule. If the developer fulfills this obligation by opening all required salons according to the schedule, the term concludes on the opening date of the final salon.

However, the agreement can end sooner if it's terminated before all salons are opened. This could occur due to various reasons outlined in the agreement, such as a breach of contract by either party. Therefore, the term's length is not fixed but depends on the developer's adherence to the development schedule and the overall status of the agreement.

It is important for potential Itan area developers to carefully review the Development Schedule and understand the obligations for opening Required Salons, as this directly impacts the Term of the Area Development Agreement. They should also be aware of the conditions under which the agreement can be terminated, as this could also affect the Term.