As an Itan franchisee, what document must I sign?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
If we award you a franchise, you must sign the form of franchise agreement attached to this Disclosure Document as EXHIBIT "C" (the "Franchise Agreement"). We refer to the franchised business you purchase as your "Business" or your "Salon". The Franchise Agreement grants you a license to use certain service marks, trademarks, trade names and logos, including the service marks iTAN® and iTAN SUN SPRAY SPA® (collectively, the "Marks"). The Marks also include our distinctive trade dress used to identify a Salon or the products it sells. The Franchise Agreement also grants you a license to use the system we developed for the operation of a Salon (the "System"). Our confidential Brand Standards Manual (the "Manual") describes the operational aspects of a Salon. You will operate your Salon as an independent business using the Marks, the System, the information in the Manual, and the support, guidance and other methods and materials we provide.
Conversion Salons
In some cases, we allow the owner of a pre-existing tanning salon to purchase a franchise and convert their preexisting tanning salon to an iTAN Salon (a "Conversion Salon"). If you are acquiring franchise rights for a Conversion Salon, you must sign the Conversion Addendum attached to this Disclosure Document as EXHIBIT "H"-3. If you operated your pre-existing tanning salon for at least 1 year prior to signing the Franchise Agreement (a "Qualifying Conversion Salon"), you may receive a discount on your initial franchise fee (see Item 5) and a lower royalty fee during the initial 2 years after you convert to an iTAN Salon (see Item 6).
Area Development Rights
If you satisfy our criteria for multi-unit developers, we may (but need not) offer you the right to sign the form of Area Development Agreement attached to this Disclosure Document as EXHIBIT "D" (the "ADA"). The ADA grants you the right and obligation to develop, open and operate multiple Salons within a defined "development territory" according to a predetermined "development schedule". You must commit to develop, open and operate a minimum of 3 Salons in order to sign an ADA. You must develop, open and operate all of the Salons identified in the development schedule. You must sign a separate franchise agreement for each Salon you develop. Each franchise agreement will be our then-current form of franchise agreement, which may be different than the form of Franchise Agreement attached to this Disclosure Document.
Source: Item 1 — FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–9)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if Itan awards you a franchise, you must sign the Franchise Agreement, which is attached to the Disclosure Document as EXHIBIT "C". If you are converting a pre-existing tanning salon to an Itan Salon, you must also sign the Conversion Addendum attached as EXHIBIT "H"-3. If you are granted the right to develop multiple Itan Salons, you must sign the Area Development Agreement attached as EXHIBIT "D".
The Franchise Agreement grants you a license to use Itan's service marks, trademarks, trade names, and logos, including the service marks iTAN® and iTAN SUN SPRAY SPA®. It also licenses you to use the system Itan developed for the operation of a Salon. The confidential Brand Standards Manual describes the operational aspects of a Salon.
If you are acquiring franchise rights for a Conversion Salon, you must sign the Conversion Addendum. If you operated your pre-existing tanning salon for at least 1 year prior to signing the Franchise Agreement (a "Qualifying Conversion Salon"), you may receive a discount on your initial franchise fee (see Item 5) and a lower royalty fee during the initial 2 years after you convert to an iTAN Salon (see Item 6).
If you satisfy Itan's criteria for multi-unit developers, you may be offered the right to sign the Area Development Agreement (ADA). The ADA grants you the right and obligation to develop, open and operate multiple Salons within a defined "development territory" according to a predetermined "development schedule". You must commit to develop, open and operate a minimum of 3 Salons in order to sign an ADA. You must sign a separate franchise agreement for each Salon you develop. Each franchise agreement will be Itan's then-current form of franchise agreement, which may be different than the form of Franchise Agreement attached to this Disclosure Document.