What is the Itan franchisee's obligation regarding finding a site within the Site Selection Area?
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.
7.2. Lease. If you lease the premises for your Salon, you must use best efforts to ensure your landlord signs the prescribed form of Lease Addendum attached to this Agreement as ATTACHMENT "C". If your landlord refuses to do so we may either: (a) waive the Lease Addendum requirement (or the provisions disapproved by the landlord); or (b) require you to find a new site. You and the landlord must sign the lease and Lease Addendum within 60 days after we approve your site. You must promptly send us a copy of your fully executed lease and Lease Addendum for our records.
**7.3.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are required to select a specific site for their salon within the designated Development Territory, adhering to Itan's current site selection criteria. The franchisee must get Itan's approval for each site selected.
Specifically, the franchisee must identify a site for their salon and obtain Itan's approval within 90 days of the agreement's effective date. This site must be located within the "Site Selection Area" and meet Itan's minimum site selection criteria. The franchisee is obligated to submit a complete site report, including all required documents, information, photos, and videos. Itan has the right to approve or reject proposed sites based on their commercially reasonable judgment.
Itan aims to notify the franchisee of their decision within 30 days of receiving all necessary materials. If Itan fails to issue approval within this 30-day period, the site is considered disapproved. If the site is approved before the franchise agreement is signed, the address of the approved site will be listed in Part D of ATTACHMENT "A". Otherwise, the address will be provided in a Site Approval Notice sent within 15 days of approval. The franchisee must then sign and date the acknowledgment section of the Site Approval Notice within five business days and return a copy to Itan. It is important to note that Itan's approval of a site does not constitute a warranty of its suitability for a salon; it only indicates that the site meets Itan's minimum criteria.
If the franchisee leases the premises, they must use their best efforts to ensure that the landlord signs Itan's prescribed Lease Addendum. If the landlord refuses, Itan may either waive the addendum requirement or require the franchisee to find a new site. The lease and Lease Addendum must be signed by both the franchisee and the landlord within 60 days of site approval, and a copy of the fully executed lease and addendum must be promptly sent to Itan.