Can an Itan franchisee renew if they are in default under any Definitive Agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ent territory guidelines and criteria. If this Agreement is a Successor Agreement, the Term of this Agreement and your remaining renewal rights, if any, shall be governed by your original franchise agreement
- 4.2. Renewal Requirements. In order to renew, you and the Owners (as applicable) must:
- (a) send us a notice of your intent to enter into a Successor Agreement not less than 240 days nor more than one (1) year before the expiration of the Term or renewal term, as applicable;
- (b) not be in default under any Definitive Agreement at the time you send the renewal notice or sign the Successor Agreement;
- (c) sign the Successor Agreement and all ancillary documents we require franchisees to sign;
- (d) sign a General Release;
- (e) pay us a $1,000 renewal fee;
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an Itan franchisee cannot renew their franchise agreement if they are in default under any Definitive Agreement at the time they send the renewal notice or when they sign the Successor Agreement.
To renew their franchise rights, a franchisee must sign a Successor Agreement for a five-year renewal term, with a maximum of two Successor Agreements. The Successor Agreement will be the current form of the franchise agreement that Itan uses when granting franchises at the time of renewal, and its terms may differ significantly from the original agreement. Upon renewal, Itan reserves the right to modify the franchisee's territory based on its current guidelines.
In addition to not being in default, the franchisee must also send a renewal notice between 240 days and one year before the expiration of the current term, sign the Successor Agreement and any required ancillary documents, sign a General Release, pay a $1,000 renewal fee, remodel the salon to meet Itan's current standards, and extend the lease for the renewal term.