What must an Itan franchisee do after receiving the Site Approval Notice?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Within five (5) business days after we send you the Site Approval Notice, you must sign and date the franchisee acknowledgment section and send us a copy for our records. Our approval of the site and designation of your Territory is immediately effective and binding on you at the time we issue the Site Approval Notice even if you do not send us a signed acknowledgment. Our approval of a site is not a representation or warranty of any kind, express or implied, of the suitability of the site for a Salon. It only means we believe the site meets our minimum criteria.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, within five business days of receiving the Site Approval Notice, a franchisee must sign and date the franchisee acknowledgment section of the notice and send a copy to Itan for their records. Itan emphasizes that their approval of the site and the designation of the franchisee's territory become effective and binding the moment Itan issues the Site Approval Notice, regardless of whether Itan receives the signed acknowledgment from the franchisee.
This requirement ensures that Itan has a formal record of the franchisee's acknowledgment of the approved site and territory. However, the franchisee is bound by the site approval even if they fail to return the signed acknowledgment. This highlights the importance of carefully reviewing the Site Approval Notice upon receipt, as the franchisee is immediately bound by its terms.
Furthermore, the FDD clarifies that Itan's approval of a site does not constitute any representation or warranty regarding the site's suitability for an Itan salon. It simply means that Itan believes the site meets their minimum criteria. This places the onus on the franchisee to conduct their own due diligence to ensure the site is appropriate for their business needs, beyond just meeting Itan's minimum requirements.