What exhibit should I sign if I am acquiring franchise rights for an Itan Conversion Salon?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
In some cases, we allow the owner of a pre-existing tanning salon to purchase a franchise and convert their preexisting tanning salon to an iTAN Salon (a "Conversion Salon"). If you are acquiring franchise rights for a Conversion Salon, you must sign the Conversion Addendum attached to this Disclosure Document as EXHIBIT "H"-3. If you operated your pre-existing tanning salon for at least 1 year prior to signing the Franchise Agreement (a "Qualifying Conversion Salon"), you may receive a discount on your initial franchise fee (see Item 5) and a lower royalty fee during the initial 2 years after you convert to an iTAN Salon (see Item 6).
Source: Item 1 — FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–9)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if you are acquiring franchise rights for an existing tanning salon that you plan to convert into an Itan Salon, you are required to sign the Conversion Addendum. This addendum is included as Exhibit H-3 in the FDD.
Itan offers the opportunity for owners of pre-existing tanning salons to convert their businesses into Itan franchises. These are referred to as "Conversion Salons." This conversion option allows existing salon owners to rebrand and operate under the Itan name and system.
Furthermore, if you have operated your pre-existing tanning salon for at least one year before signing the Franchise Agreement, your salon will be considered a "Qualifying Conversion Salon." This status may entitle you to certain financial benefits, such as a discount on the initial franchise fee, as detailed in Item 5, and a reduced royalty fee for the first two years after converting to an Itan Salon, as outlined in Item 6.