According to Itan's 2025 Franchise Disclosure Document, a franchisee's territorial protections are not contingent on achieving a specific sales volume or market penetration. This means that as long as the franchisee adheres to the terms of the Franchise Agreement, their protected territory remains intact regardless of their sales performance.

However, this protection is conditional. If a franchisee signs an Area Development Agreement (ADA) and fails to meet the development schedule by not opening and operating the agreed-upon number of salons within the specified timeframe, Itan has the right to terminate the ADA. Consequently, the franchisee would lose the territorial protections associated with their development territory. This underscores the importance of carefully assessing one's ability to meet the development schedule outlined in the ADA before committing to such an agreement.

It's important to note that while sales volume doesn't directly impact territorial protection under the standard Franchise Agreement, failing to meet development obligations under an ADA can lead to its termination and the loss of territorial rights. Prospective franchisees should carefully consider the implications of an ADA and the feasibility of meeting its development requirements.