What must an Itan developer provide regarding their Owners as part of the Development Agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
nterparts, each of which shall be deemed an original and all of which together shall constitute but one and the same document.
[Signature Page Follows]
The parties below have executed this Agreement effective as of the Effective Date first above written.
FRANCHISOR:
iTAN Franchising, Inc., a California corporation YOU (If you are an Entity): YOU (If you are not an Entity): , a(n)
ATTACHMENT "A"
TO AREA DEVELOPMENT AGREEMENT
DEAL TERMS
A. Area Developer Details Name of area developer: [] Is the area developer one or more natural Persons signing in their individual capacity? Yes: No: Type of Entity and State of Formation* (if applicable): [] * If the area developer is a business Entity, each Person holding a direct or indirect Equity Interest in the Developer Entity, and spouse of each such Person who is a natural Person, must sign a Franchise Owner Agreement concurrently with the execution of this Agreement. The following table includes the full name of each Person holding a direct or indirect Equity Interest in the Development Business or Developer Entity, as applicable, along with a description of their Equity Interest. Owner's Name % Equity Interest Direct or Indirect (if indirect, describe nature of interest) Notice Address: Attention: Email: B. Development Fee The Development Fee is $ C. Development Schedule.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if the area developer is a business entity, they must provide the full name of each person holding a direct or indirect equity interest in the Development Business or Developer Entity, along with a description of their Equity Interest. This also applies to the spouse of each such person who is a natural person. Each of these individuals must also sign a Franchise Owner Agreement concurrently with the execution of the Development Agreement.
Itan requires that Part A of ATTACHMENT "A" includes a complete and accurate list of the developer's Owners. Upon request from Itan, the developer must send a resolution of the Developer Entity authorizing the execution of the agreement, a copy of its organizational documents, and a current Certificate of Good Standing.
This information allows Itan to assess the qualifications, character, and financial resources of the individuals involved in the development of Itan salons. It also ensures that all individuals with a significant stake in the business are bound by the terms of the Franchise Owner Agreement. This is a common practice in franchising, as franchisors want to ensure that all owners are committed to the brand and understand their obligations.