Where in the Itan FDD can I find additional marketing restrictions?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
esses registered within a given territory and conducting promotional events within a given territory.
You may not market or sell using Alternative Channels of Distribution (such as the Internet, catalog sales, telemarketing or other direct marketing) either within or outside of your territory or development territory, if applicable. Your marketing activities are also subject to the additional restrictions described in Item 11 under the Section entitled "Websites, Social Media and Digital Advertising". You must comply with any minimum advertised pricing policy that we establish from time to time.
There are no other restrictions on your right to solicit customers, whether from inside or outside of your territory or development territory, if applicable.
Minimum Performance Requirements
Your territorial protections under the Franchise Agreement do not depend on achieving a certain sales volume, market penetration or other contingency.
If you sign an ADA and fail to satisfy your development schedule by opening and operating the prescribed number of Salons within the required period of time, we may terminate your ADA and you will lose the territorial protections associated with your development territory.
Additional Franchises and Territories
You are not granted any options, rights of first refusal or similar rights to acquire additional territories or franchises, other than your right and obligation to develop the prescribed number of Salons within your development territory if you sign an ADA.
Competing Businesses Under Different Marks
Currently, neither we nor any affiliate of ours intends to operate or franchise another business under a different trademark that sells products or services similar to the products or services offered by a Salon. However, we reserve the right to do so in the future.
Source: Item 12 — TERRITORY (FDD pages 31–33)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Item 12 discusses territory and marketing restrictions. Specifically, it states that marketing activities are subject to additional restrictions detailed in Item 11 under the section entitled "Websites, Social Media and Digital Advertising".
Item 12 also outlines restrictions on sales and marketing activities outside of a franchisee's territory or development territory. Franchisees must comply with all policies and procedures in the Manual governing extra-territorial marketing and must not engage in targeted marketing directed into any territory or development territory assigned to Itan, its affiliates, or another franchisee, unless it's part of an advertising cooperative that includes the affected territory. The FDD clarifies that marketing distributed within and outside the territory isn't considered "targeted marketing" if reasonable efforts are made to limit circulation to the franchisee's territory and the majority of recipients are within that territory, with only incidental distribution elsewhere.
The meaning of "targeted marketing" directed into a territory may be further defined in the Manual, with examples including direct mail to addresses within a territory, digital advertising to devices with IP addresses registered within a territory, and conducting promotional events within a given territory. Therefore, prospective franchisees should carefully review Item 11 and the operations manual for a comprehensive understanding of all marketing restrictions.