In the Itan franchise agreement, what are the two parties involved?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
The parties below have executed this Agreement effective as of the Effective Date first above written.
FRANCHISOR:
iTAN Franchising, Inc., a California corporation YOU (If you are an Entity): YOU (If you are not an Entity): , a(n)
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to the 2025 Itan Franchise Disclosure Document, the franchise agreement is made between iTAN Franchising, Inc., identified as the franchisor, and the franchisee, referred to as "YOU". The franchisee can be either an individual or a business entity. If the franchisee is a business entity, the specific type of entity and the state in which it was formed must be specified in the agreement.
This means that the legal agreement that grants the rights and obligations to operate an Itan salon is between Itan Franchising, Inc. and the individual or company that is being granted the franchise. It is important for prospective franchisees to understand that they are entering into a legally binding agreement with Itan Franchising, Inc. and to carefully review the terms and conditions outlined in the franchise agreement.
If the franchisee is a business entity, individuals holding equity interest may be required to sign a Franchise Owner Agreement concurrently with the execution of the franchise agreement. This ensures that individuals with a stake in the franchisee entity are also bound by the terms of the agreement. This requirement is designed to protect Itan's interests and ensure commitment to the franchise obligations.