To what extent must an Itan franchisee alter the premises after termination, expiration, or transfer of the agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ies relating to Business Data;
(f) transfer Customer Data (and, if we so request, assign all customer contracts) to us or our designee;
(g) comply with our instructions to return, destroy or transfer all copies of the Manual and Copyrighted Materials and all signs, brochures, advertising and promotional materials, forms and other materials bearing the Marks or containing Confidential Information;
(h) alter the interior and exterior of the premises to the extent necessary, or to the extent we require, to prevent any further resemblance to or connection with a Salon or our System, including repainting the exterior and interior with new colors and removing trade dress, fixtures, signage, window decals and décor items associated with a Salon;
(i) notify all telephone, listing and domain name registration companies of the termination or expiration of your right to use: (i) any telephone numbers and/or domain names associated with your Salon; and (ii) any regular, classified or other telephone directory listings associated with the Marks (you hereby authorize the foregoing companies to transfer such telephone numbers, domain names and listings to us and you authorize us, and appoint us and any officer we designate as your attorney-in-fact to direct these companies to transfer the telephone numbers, domain names and listings to us if you fail or refuse to do so);
(j) provide us with satisfactory evidence of your compliance with the above obligations within 30 days after the effective date of the termination, expiration or Transfer of this Agreement.
Subsections (f), (g), (h) and (i) above do not apply if you Transfer your Salon to an approved transferee or we exercise our right to purchase your Salon. If an Owner transfers his or her entire Equity Interest in the Business or Franchisee Entity but you continue to operate the Salon pursuant to this Agreement, then this Section will not apply to you (or to any remaining Owner) and the former Owner is subject only to the obligations set forth in subsections (a) and (b).
21.2. Purchase Option.
- (a) Generally. Upon termination or expiration of this Agreement we have the option to purchase your Salon and/or its assets. If we choose to exercise our purchase option, we will notify you of the assets we wish to purchase (the "Acquired Assets") within 20 days after the termination or expiration date. If we exercise our purchase option we may require that: (i) you assign your lease to us at no additional charge (if you lease the premises);
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, after the termination, expiration, or transfer of the Franchise Agreement, the franchisee must alter the interior and exterior of the premises to the extent necessary, or to the extent that Itan requires, to prevent any further resemblance to or connection with an Itan Salon or Itan's System. This includes repainting the exterior and interior with new colors and removing trade dress, fixtures, signage, window decals, and décor items associated with an Itan Salon.
However, these obligations do not apply if the franchisee transfers their Salon to an approved transferee or if Itan exercises its option to purchase the Salon. If an owner transfers their entire equity interest in the business or franchisee entity but the franchisee continues to operate the Salon under the existing agreement, this section will not apply to the franchisee or any remaining owner, and the former owner is only subject to specific obligations related to intellectual property and confidential information.
Additionally, the franchisee must comply with Itan's instructions to return, destroy, or transfer all copies of the Manual and Copyrighted Materials, as well as all signs, brochures, advertising and promotional materials, forms, and other materials bearing Itan's Marks or containing Confidential Information. The franchisee must also notify all relevant companies of the termination or expiration of their right to use any telephone numbers and/or domain names associated with their Salon, and authorize the transfer of these assets to Itan. The franchisee must provide Itan with satisfactory evidence of compliance with these obligations within 30 days after the effective date of the termination, expiration, or transfer of the Franchise Agreement.
Itan also has the right to enter the premises to make any modifications or alterations that Itan deems necessary to protect its franchise system or trademarks and to remove any trade fixtures, interior or exterior signs, and other items bearing Itan's trademarks or service marks upon the expiration or termination of the Franchise Agreement.