What must an Itan franchisee do with the trade dress upon termination?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ies relating to Business Data;
(f) transfer Customer Data (and, if we so request, assign all customer contracts) to us or our designee;
(g) comply with our instructions to return, destroy or transfer all copies of the Manual and Copyrighted Materials and all signs, brochures, advertising and promotional materials, forms and other materials bearing the Marks or containing Confidential Information;
(h) alter the interior and exterior of the premises to the extent necessary, or to the extent we require, to prevent any further resemblance to or connection with a Salon or our System, including repainting the exterior and interior with new colors and removing trade dress, fixtures, signage, window decals and décor items associated with a Salon;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–39)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, the franchisee must alter both the interior and exterior of the premises to eliminate any resemblance to an Itan salon. This includes repainting the interior and exterior with new colors and removing trade dress, fixtures, signage, window decals, and décor items associated with the salon.
This requirement ensures that after the franchise agreement ends, the location no longer appears to be an Itan salon, protecting the brand's image and preventing customer confusion. The franchisee is responsible for covering the costs associated with these alterations.
However, these obligations do not apply if the franchisee transfers the salon to an approved transferee or if Itan exercises its option to purchase the salon. This exception acknowledges that in these scenarios, maintaining the salon's appearance and trade dress is beneficial for the continued operation of the Itan business. The franchisee must also provide satisfactory evidence of compliance with these obligations within 30 days after the effective date of termination.