What documentation are Itan franchisees and Owners required to sign to effectuate a Permitted Transfer?

According to Itan's 2025 Franchise Disclosure Document, both the franchisee and their Owners are required to sign all documents that Itan reasonably requests to complete and record a Permitted Transfer. A Permitted Transfer is defined as a transfer between existing Owners, or a transfer by the Owners to a new Franchisee Entity where the Owners collectively own and control 100% of the Equity Interests. However, this excludes any transfer that results in the Managing Owner owning less than 20% of the Equity Interests in the Business or Franchisee Entity.

In addition to signing the requested documents, the franchisee must provide Itan with at least 10 days' prior notice of the Permitted Transfer. If the transfer results in a new Franchisee Entity, the former Franchisee Entity must sign a corporate guarantee, if requested by Itan, to secure the new entity's financial obligations under all Definitive Agreements.

If the transfer is not considered a Permitted Transfer, Itan's approval is required. In this case, in addition to the documents required for a Permitted Transfer, the franchisee and Owners must sign a General Release. The transferee must also agree to discharge and guarantee the franchisee's obligations, sign Itan's current franchise agreement, and agree to remodel the salon to meet Itan's current standards within a specified timeframe. Furthermore, a $10,000 transfer fee must be paid to Itan.