What geographic areas can typically constitute an Itan development territory?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
then-current territory guidelines and criteria.
Description of Development Territory (ADA)
If you acquire area development rights, we will identify the boundaries of your development territory in Part D of ATTACHMENT "A" to your ADA. A development territory typically consists of a geographic area that coincides with the boundaries of a municipality, such as a city, county or state. However, we may define a development territory in any other manner we deem appropriate, such as by map, zip codes, designated market areas, etc. There is no specific minimum or maximum size for a development territory. In determining the size of your development territory, we primarily consider the number of Salons you commit to develop.
You must sign a separate Franchise Agreement for each Salon you develop. All Salons you develop must be located in your development territory. We must approve the site for each Salon you develop under our thencurrent site selection criteria. We send you a complete execution copy of the ADA that includes your development territory, development fee and development schedule at least 7 days before you sign it.
Territorial Protections and Limitations
During the term of your Franchise Agreement we will not develop or operate, or license a third party to develop or operate, a Salon using our Marks that is located in your territory except as otherwise permitted below with respect to Acquisitions (defined below).
During the term of the ADA we will not develop or operate, or license a third party to develop or operate, a Salon using our Marks that is located in your development territory other than: (a) any Salon that is located in your development territory as of the date you sign the ADA (either open, under construction or for which a Franchise Agreement has been signed); and (b) as otherwise permitted below with respect to Acquisitions.
Source: Item 12 — TERRITORY (FDD pages 31–33)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a development territory typically consists of a geographic area that coincides with the boundaries of a municipality, such as a city, county, or state. However, Itan has the flexibility to define a development territory in any other manner they deem appropriate, such as by map, zip codes, or designated market areas.
Itan does not specify a minimum or maximum size for a development territory. The primary factor in determining the size of a development territory is the number of salons the franchisee commits to develop. This means that a franchisee planning to open multiple Itan locations would likely be granted a larger development territory.
It is important to note that while Itan grants territorial protections during the term of the Area Development Agreement (ADA), these protections are subject to certain limitations. Itan reserves the right to acquire other businesses, which may then be converted into Itan salons regardless of their location, even within a franchisee's development territory. This could introduce competition within a franchisee's protected area. Additionally, Itan retains the right to sell or license others to sell competitive goods and services through alternative channels of distribution, such as the internet or retail stores, within the development territory.