What exceptions exist to Itan's prohibition on developing or operating a Salon within the Development Territory during the term of the development agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term we will not develop or operate, or license a third party to develop or operate, a Salon that is physically located within the Development Territory other than: (a) any Salon that is operating, under development, or for which a franchise agreement has been executed, in each case as of the Effective Date, and that is (or will be) located within the Development Territory; and (b) any Salon otherwise permitted by this Section. At any time during the Term we reserve the right to engage in Acquisitions that involve, or subsequently result in, conversion of the acquired or acquiring company's outlets to ITAN® Salons, even if those outlets are located in the Development Territory. We reserve the right to sell, and license third parties to sell, competitive or identical goods and services (including under the Marks) within the Development Territory through Alternative Channels of Distribution.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, during the term of the development agreement, Itan is restricted from developing, operating, or licensing a third party to develop or operate a Salon within the Development Territory. However, there are exceptions to this restriction.
Itan retains the right to operate or license a third party to operate a Salon within the Development Territory under specific conditions. This includes any Salon that is already operating, under development, or has a franchise agreement executed as of the effective date of the agreement. These Salons must be located within the Development Territory to qualify for this exception.
Additionally, Itan reserves the right to engage in acquisitions that may involve converting the acquired company's outlets into Itan Salons, even if these outlets are situated within the franchisee's Development Territory. Itan also retains the right to sell and license third parties to sell competitive or identical goods and services, including those using Itan's trademarks, within the Development Territory through alternative channels of distribution.