What is the Itan franchisee required to do regarding site approval before signing the agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1. Site Selection. You must identify and obtain our approval of the site for your Salon within 90 days after the Effective Date. The site must be located in the Site Selection Area and conform to our minimum site selection criteria. You must send us a complete site report that includes all documents, information, photos and video we require. We may accept or reject sites you propose in our commercially reasonable judgment. We try to notify you of our decision within 30 days after we receive all requisite materials. Your site is deemed disapproved if we do not issue our approval within the 30-day period. If we approve the site for your Salon before signing this Agreement, we will list the address of your approved site in Part D of ATTACHMENT "A". Otherwise, we list the address of your approved site in a Site Approval Notice we send to you within 15 days after approving your site. 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, if a site is approved before signing the Franchise Agreement, the address of the approved site will be listed in Part D of ATTACHMENT "A". Otherwise, the address will be listed in a Site Approval Notice sent within 15 days of approval. Within five business days of receiving the Site Approval Notice, the franchisee must sign and date the acknowledgment section and return a copy.
Itan retains the right to approve or reject proposed sites based on their commercially reasonable judgment. They aim to notify the franchisee of their decision within 30 days of receiving all necessary materials. If no approval is issued within this 30-day period, the site is considered disapproved.
It is important to note that Itan's approval of a site does not constitute a warranty of its suitability for a salon. It simply indicates that the site meets their minimum criteria. Franchisees are also required to identify and secure site approval within 90 days of the agreement's effective date, ensuring the site is within the designated Site Selection Area and meets Itan's minimum criteria.