For Itan franchises, is a transfer between existing owners considered a 'Permitted Transfer'?

According to Itan's 2025 Franchise Disclosure Document, a transfer between existing owners is considered a 'Permitted Transfer'. Specifically, the FDD defines a 'Permitted Transfer' as a transfer between existing owners or a transfer by the owners to a new business entity that is 100% owned and controlled by the transferring owners.

However, there is a condition to this definition. The transfer is not considered a 'Permitted Transfer' if it results in the Managing Owner owning less than 20% of the franchised business. The 'Managing Owner' is defined as the owner appointed and approved by Itan with primary responsibility for the overall management and operation of the Salon.

This definition is important for prospective Itan franchisees because it clarifies the conditions under which a transfer of ownership can occur without requiring additional approvals or fees beyond what is outlined for permitted transfers. It allows for flexibility in ownership structure while ensuring that the Managing Owner maintains a significant stake in the business.