What happens if Itan does not issue site approval within the specified timeframe?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if Itan does not issue site approval within the specified timeframe, the site is deemed disapproved. Specifically, Itan tries to notify a franchisee of their decision regarding site approval within 30 days after receiving all necessary materials. However, if Itan does not issue its approval within this 30-day period, the site is considered disapproved.
This has significant implications for a prospective Itan franchisee. The franchisee is responsible for identifying a site for their salon within 90 days after the franchise agreement's effective date. The site must meet Itan's minimum criteria and be located in the designated Site Selection Area. Failing to secure site approval within Itan's review period means the franchisee must restart the site selection process, potentially causing delays in opening their salon.
It is important for prospective franchisees to understand the site selection process and the timelines involved. Franchisees should ensure they submit complete and accurate site reports to Itan to facilitate a timely review. If Itan fails to respond within the 30-day period, the franchisee should follow up to clarify the status of their application and understand the reasons for the delay. This proactive approach can help mitigate potential setbacks and keep the project on track.
Furthermore, the franchise agreement states that failure to identify an approved site, secure a fully executed lease and Lease Addendum, or open the salon before the deadlines set forth in the agreement constitutes a material event of default and "good cause" for termination. This underscores the importance of adhering to the specified timelines and securing timely site approval from Itan.