What happens if an Itan franchisee fails to find an approved site?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1. Site Selection. You must identify and obtain our approval of the site for your Salon within 90 days after the Effective Date. The site must be located in the Site Selection Area and conform to our minimum site selection criteria. You must send us a complete site report that includes all documents, information, photos and video we require. We may accept or reject sites you propose in our commercially reasonable judgment. We try to notify you of our decision within 30 days after we receive all requisite materials. Your site is deemed disapproved if we do not issue our approval within the 30-day period. If we approve the site for your Salon before signing this Agreement, we will list the address of your approved site in Part D of ATTACHMENT "A". Otherwise, we list the address of your approved site in a Site Approval Notice we send to you within 15 days after approving your site. Within five (5) business days after we send you the Site Approval Notice, you must sign and date the franchisee acknowledgment section and send us a copy for our records. Our approval of the site and designation of your Territory is immediately effective and binding on you at the time we issue the Site Approval Notice even if you do not send us a signed acknowledgment. Our approval of a site is not a representation or warranty of any kind, express or implied, of the suitability of the site for a Salon. It only means we believe the site meets our minimum criteria.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–39)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must identify and secure Itan's approval of a site for their salon within 90 days of the franchise agreement's effective date. The site must be within the designated Site Selection Area and meet Itan's minimum site selection criteria. Franchisees are required to submit a comprehensive site report, including all necessary documents, information, photos, and videos.
Itan retains the right to accept or reject proposed sites based on their commercially reasonable judgment. While Itan aims to notify franchisees of their decision within 30 days of receiving all required materials, a site is automatically considered disapproved if Itan fails to issue an approval within this 30-day timeframe.
This 90-day requirement to find a location is an important consideration for prospective Itan franchisees. Failure to find an approved site within this timeframe could put the franchisee in default of the franchise agreement. It is important for prospective franchisees to understand Itan's site selection criteria and the Site Selection Area before signing the agreement to ensure they can meet this requirement.