What form of agreement will be used to memorialize the acquisition of my salon by Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Background
- A. You currently own and operate a business (the "Current Business") from the premises located at the address listed in Part A of Attachment A to this Addendum (the "Premises").
- B. The Current Business offers services that are similar to the services offered by an iTAN salon.
- C. You desire to acquire an iTAN franchise for purposes of converting your Current Business to an iTAN Salon and we are willing to grant you the right and obligation to do so.
- D. Concurrently with the execution of this Addendum, the Parties are entering into an iTAN Franchise Agreement (the "Franchise Agreement"), pursuant to which we will grant you the right and obligation to convert the Current Business to an iTAN Salon that operates in accordance with our System and features tanning, beauty and wellness services (e.g., FIT Bodywrap®, aqua massage, teeth whitening, salt therapy, photo light therapy and other approved services) and sells related retail items under our Marks (your "ITAN Salon").
- E. In order to effectuate the conversion of your Current Business to an iTAN Salon, the Parties desire to modify the Franchise Agreement according to the terms and conditions set forth herein.
- F. In consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, and intending to be legally bound, the Parties hereby agree to the terms and conditions set forth below.
Agreement
- **1.
Defined Terms and Section References**.
Any capitalized term that is not defined in this Addendum shall have the meaning given to such term in the Franchise Agreement.
Any reference to "Section" or "Sections" shall refer to the Section or Sections of the Franchise Agreement.
- **2.
Conversion Date**.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if you currently own and operate a business with services similar to an Itan salon and desire to convert it into an Itan franchise, you and Itan will enter into an Itan Franchise Agreement. This agreement grants you the right and obligation to convert your existing business into an Itan Salon, operating under Itan's system, which includes tanning, beauty, and wellness services, along with the sale of related retail items under Itan's Marks.
The FDD states that concurrently with the execution of an addendum, both parties will enter into the Itan Franchise Agreement. This agreement outlines the terms and conditions for converting your current business into an Itan Salon. The purpose of this agreement is to modify the standard Franchise Agreement to accommodate the specific requirements of converting an existing business, ensuring that it aligns with Itan's operational standards and brand identity.
This process involves modifying the standard Itan Franchise Agreement through an addendum to address the specifics of converting your existing business. This ensures that both parties are legally bound to the terms and conditions set forth for the conversion, including adherence to Itan's System and use of its Marks. The agreement aims to facilitate a smooth transition, allowing you to leverage your existing business while adopting Itan's established brand and operational framework.