Does the Itan franchise agreement allow the franchisee to use the Marks when signing a lease?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not utilize any of our Marks, including, without limitation, by advertising or promoting the upcoming conversion of your Current Business to an iTAN Salon at any time prior to our issuance of a written "Certificate of Conversion Completion" confirming: (a) you have complied with all conversion requirements set forth in this Addendum and all other pre-opening obligations set forth in the Franchise Agreement; and (b) your Premises is ready to commence operations as an iTAN Salon (your "Conversion Date").
You must complete the construction and conversion of your Premises to an iTAN Salon no later than the conversion completion deadline set forth in Attachment B to this Addendum.
- **3.
Lease**.
If you lease the Premises, you must negotiate with your landlord, if necessary, to modify your lease in order to provide you with a term of at least 10 years from the Conversion Date.
You must also cause your landlord to execute our required Lease Addendum.
We may require that you complete these steps prior to execution of the Franchise Agreement and this Addendum.
At a minimum, we may require execution of the Lease Addendum as a condition to us issuing our Certificate of Conversion Completion pursuant to §5 of this Addendum.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are not allowed to use Itan's Marks, including advertising or promoting the upcoming conversion of their current business to an Itan salon, before receiving a written "Certificate of Conversion Completion." This certificate confirms that the franchisee has met all conversion requirements and pre-opening obligations outlined in the Franchise Agreement, and that the premises are ready to operate as an Itan Salon. The date this certificate is issued is referred to as the "Conversion Date."
This restriction ensures that the Itan brand is only associated with locations that meet the franchisor's standards. It protects the brand's reputation by preventing premature association with locations that are not yet fully compliant with Itan's requirements. This is a common practice in franchising, where brand consistency is crucial.
Furthermore, if a franchisee leases their premises, they must negotiate with the landlord to secure a lease term of at least 10 years from the Conversion Date. The franchisee must also ensure that the landlord executes Itan's required Lease Addendum. Itan may require these steps to be completed before the Franchise Agreement and its addendum are executed. At the very least, Itan may require the Lease Addendum to be executed before issuing the Certificate of Conversion Completion. This requirement ensures that Itan has some control over the lease terms and can protect its interests in the location.