In the Itan franchise agreement, what form must the franchisor's approval take to be binding?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **24.5.
Approvals.** Whenever this Agreement requires our approval, you must make a timely written request for approval.
Our approval must be in writing in order to bind us.
Except as otherwise expressly provided in this Agreement, if we fail to approve any request for approval within the required period of time, we shall be deemed to have disapproved your request.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, any approval required from Itan must be in writing to be considered binding. This requirement ensures clarity and prevents misunderstandings regarding what Itan has approved. It also protects both Itan and the franchisee by providing a documented record of approvals.
This stipulation means that verbal agreements or implied consent from Itan are not sufficient. If a franchisee seeks approval for something, such as a marketing plan or a change to the salon's layout, they must obtain written confirmation from Itan. This written approval serves as proof that Itan has agreed to the franchisee's request, which can be crucial in resolving disputes or ensuring compliance with franchise standards.
Furthermore, the Itan franchise agreement states that if Itan fails to approve a request within the required time frame, it will be deemed as disapproved, unless expressly stated otherwise in the agreement. This clause emphasizes the importance of timely communication and documentation in the franchise relationship. Franchisees should be diligent in submitting requests and obtaining written approvals to avoid potential issues.