Does Itan grant franchisees an exclusive territory?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You will not receive an exclusive territory or development territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
We will grant you a territory with a minimum population of 50,000.
We reserve the right to sell, and license others to sell, competitive or identical goods and services (either under the Marks or different trademarks) through Alternative Channels of Distribution, including within your territory and development territory, if applicable. An "Alternative Channel of Distribution" means any channel of distribution other than retail sales made to customers while present at a Salon. Examples of Alternative Channels of Distribution include:
- sales through direct marketing, such as over the Internet or through catalogs or telemarketing
- sales through retail stores that do not operate under the Marks, such as grocery stores, convenience stores, spas and tanning salons (other than spas or tanning salons operating under the Marks)
sales made at wholesale
You can market and advertise outside of your territory and development territory, if applicable, as long as: (a) you comply with all policies and procedures in the Manual governing extra-territorial marketing; and (b) you do not engage in targeted marketing directed into any territory or development territory assigned to us, our affiliate or another franchisee (unless the marketing is conducted as part of an advertising cooperative that includes the affected territory).
You may not market or sell using Alternative Channels of Distribution (such as the Internet, catalog sales, telemarketing or other direct marketing) either within or outside of your territory or development territory, if applicable.
We reserve the right to acquire, or be acquired by, another business or chain that may sell competitive or identical goods or services, and those businesses may be converted into Salons operating under the Marks regardless of their location (an "Acquisition"). Any such acquired or converted businesses may be located within your territory and development territory, if applicable.
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, franchisees do not receive an exclusive territory. The FDD specifies that franchisees may face competition from other franchisees, outlets that Itan owns, or other channels of distribution or competitive brands that Itan controls. This means that while Itan grants a territory with a minimum population of 50,000, this territory is not exclusive. Itan retains the right to sell, and license others to sell, competitive or identical goods and services through alternative channels of distribution, even within a franchisee's territory. These alternative channels include internet sales, catalogs, telemarketing, sales through retail stores that do not operate under Itan's marks such as grocery stores, convenience stores, spas and tanning salons, and wholesale sales.
While franchisees can market and advertise outside their territory, they must comply with Itan's policies and procedures and avoid targeted marketing into territories assigned to Itan, its affiliates, or other franchisees, unless it's part of an advertising cooperative. Franchisees are also restricted from using alternative channels of distribution, such as internet sales or telemarketing, either within or outside their territory.
Itan also reserves the right to acquire or be acquired by another business that sells similar goods or services, and these businesses may be converted into Itan salons regardless of their location, even within a franchisee's territory. This lack of territorial exclusivity and the potential for competition from various sources represent significant considerations for prospective Itan franchisees.
For franchisees who acquire area development rights (ADA), Itan will define the development territory, typically coinciding with a municipality's boundaries. During the ADA term, Itan will not develop or operate, or license a third party to develop or operate, a Salon using their Marks that is located in your development territory other than any Salon that is located in your development territory as of the date you sign the ADA or as otherwise permitted with respect to Acquisitions.