What happens if an Itan franchisee fails to maintain a required license or permit?

According to Itan's 2025 Franchise Disclosure Document, if a governmental authority suspends or revokes a license or permit that an Itan franchisee or owner is required to hold to operate the salon, Itan may terminate the franchise agreement. This is the case even if the franchisee or owner has the right to appeal the suspension or revocation.

This provision highlights the critical importance of maintaining all necessary licenses and permits in good standing. Failure to do so can have severe consequences, including the loss of the franchise. Prospective Itan franchisees should carefully investigate all licensing and permit requirements applicable to their location and ensure they have a plan for ongoing compliance.

It is common practice in franchising for franchisors to reserve the right to terminate the franchise agreement if a franchisee fails to maintain required licenses or permits. This is because the operation of the business without the proper credentials can expose both the franchisee and the franchisor to legal and financial risks, as well as damage the brand's reputation.