What is the Itan franchisee required to do regarding the prospects for development of Required Salons in the Development Territory?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3. Reasonableness of Development Schedule. You represent that you: (a) have conducted your own independent investigation and analysis of the prospects for development of the Required Salons in the Development Territory; (b) approve the Development Schedule as being reasonable and viable; and (c) recognize that a breach of the Development Schedule is a material breach of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee must conduct their own independent investigation and analysis of the prospects for developing the Required Salons within their Development Territory. This means that Itan expects you to do your own due diligence and market research to determine if the territory can support the number of salons you are obligated to open.
Furthermore, the franchisee must approve the Development Schedule, acknowledging that it is reasonable and viable. The Development Schedule outlines the timeline for opening the Required Salons. By approving this schedule, the franchisee confirms they believe it is achievable.
Finally, the franchisee acknowledges that failing to meet the Development Schedule constitutes a material breach of the Development Agreement. This highlights the importance Itan places on franchisees meeting their development obligations and the potential consequences of not doing so. Prospective franchisees should carefully consider the Development Schedule and their ability to meet it before signing the agreement.