What documents must an Itan franchisee sign to renew the franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
sell, and license third parties to sell, competitive or identical goods and services (including under the Marks) within the Territory through Alternative Channels of Distribution.
4. TERM AND RENEWAL.
- 4.1. Generally. This Agreement grants you the right to operate your Salon during the Term. You may renew your franchise rights by signing a Successor Agreement for a five (5) year renewal term. You may enter into a maximum of two (2) Successor Agreements. The parties may agree to further renewals after expiration of the second (2nd) renewal term, but neither party is obligated to do so (unless required by applicable Law, in which case the same renewal terms and conditions set forth in this Agreement shall apply to subsequent renewals). In order to sign a Successor Agreement you must satisfy all renewal conditions specified in this Agreement or the Successor Agreement you wish to renew, as applicable. The Successor Agreement shall be the current form of franchise agreement we use to grant franchises as of the expiration of the Term or renewal term, as applicable, the terms of which may vary materially and substantially from the terms of this Agreement. Upon renewal, we reserve the right to modify the boundaries of your Territory in accordance with our then-current territory guidelines and criteria. If this Agreement is a Successor Agreement, the Term of this Agreement and your remaining renewal rights, if any, shall be governed by your original franchise agreement
- 4.2. Renewal Requirements. In order to renew, you and the Owners (as applicable) must:
- (a) send us a notice of your intent to enter into a Successor Agreement not less than 240 days nor more than one (1) year before the expiration of the Term or renewal term, as applicable;
- (b) not be in default under any Definitive Agreement at the time you send the renewal notice or sign the Successor Agreement;
- (c) sign the Successor Agreement and all ancillary documents we require franchisees to sign;
- (d) sign a General Release;
- (e) pay us a $1,000 renewal fee;
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, to renew the franchise, a franchisee must sign a Successor Agreement and all ancillary documents that Itan requires franchisees to sign. Additionally, the franchisee and owners must sign a General Release.
The Successor Agreement will be Itan's current form of franchise agreement at the time of renewal, which may have terms that differ significantly from the original agreement. The franchisee must also meet other conditions such as sending notice of intent to renew within a specified timeframe, not being in default of any agreements, paying a $1,000 renewal fee, remodeling the salon to current standards, and extending the lease term.
It is important for prospective Itan franchisees to understand that the terms of the renewal agreement can change and that significant investment in remodeling may be required to maintain the franchise. Franchisees should carefully review the then-current form of the franchise agreement before deciding to renew.