What is the Itan franchisee's obligation regarding the use of the Salon premises?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- E. In order to effectuate the conversion of your Current Business to an iTAN Salon, the Parties desire to modify the Franchise Agreement according to the terms and conditions set forth herein.
- F. In consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, and intending to be legally bound, the Parties hereby agree to the terms and conditions set forth below.
Agreement
- 1. Defined Terms and Section References. Any capitalized term that is not defined in this Addendum shall have the meaning given to such term in the Franchise Agreement. Any reference to "Section" or "Sections" shall refer to the Section or Sections of the Franchise Agreement.
- 2. Conversion Date. You may not utilize any of our Marks, including, without limitation, by advertising or promoting the upcoming conversion of your Current Business to an iTAN Salon at any time prior to our issuance of a written "Certificate of Conversion Completion" confirming: (a) you have complied with all conversion requirements set forth in this Addendum and all other pre-opening obligations set forth in the Franchise Agreement; and (b) your Premises is ready to commence operations as an iTAN Salon (your "Conversion Date"). You must complete the construction and conversion of your Premises to an iTAN Salon no later than the conversion completion deadline set forth in Attachment B to this Addendum.
- 3. Lease. If you lease the Premises, you must negotiate with your landlord, if necessary, to modify your lease in order to provide you with a term of at least 10 years from the Conversion Date. You must also cause your landlord to execute our required Lease Addendum. We may require that you complete these steps prior to execution of the Franchise Agreement and this Addendum. At a minimum, we may require execution of the Lease Addendum as a condition to us issuing our Certificate of Conversion Completion pursuant to §5 of this Addendum.
- 4. Construction and Conversion of Premises.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a franchisee is converting an existing business to an Itan salon, they must adhere to specific obligations regarding the premises. Prior to the official conversion date, marked by Itan's "Certificate of Conversion Completion," the franchisee cannot use Itan's marks to advertise the upcoming conversion. The franchisee is obligated to complete the conversion of the premises into an Itan Salon by the deadline outlined in Attachment B of the agreement.
If the franchisee leases the premises, they must negotiate with the landlord to secure a lease term of at least 10 years from the conversion date and ensure the landlord executes Itan's required Lease Addendum. Itan may require these steps to be completed before the Franchise Agreement is executed or as a condition for issuing the Certificate of Conversion Completion.
The franchisee is responsible for re-imaging, remodeling, renovating, refurbishing, and modernizing the premises at their own expense to meet the standards and specifications detailed in Itan's manual. This includes design, layout, construction materials, furniture, fixtures, equipment, and signage. Itan retains the discretion to limit the required remodeling to painting and lightweight items to reduce conversion costs. The franchisee must also hire a licensed and bonded architect to prepare construction plans that incorporate minimum modifications, meet manual standards, and comply with all laws.