What happens if a new Managing Owner is appointed for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
Ownership Participation
You must designate an owner with overall responsibility for the management and operation of your Salon (the "Managing Owner"). The Managing Owner must: (a) be approved by us; (b) successfully complete all training programs we require; (c) dedicate full-time efforts to the Business; and (d) at all times hold at least a 20% ownership interest in the franchise (or the entity that is the franchisee under the Franchise Agreement) unless we waive this requirement. The Managing Owner is not required to provide onsite management of your Salon as long as a trained manager is onsite. Any new Managing Owner you appoint must successfully complete our then-current initial training program before assuming responsibility for the management of your Salon.
We do not require that any of your other owners personally participate in the operation or management of your Business. If you are an entity, each owner (i.e., each person holding a direct or indirect ownership interest in the entity) and the spouse of each owner must sign the Franchise Owner Agreement attached to the Franchise Agreement as ATTACHMENT "D". By signing the Franchise Owner Agreement, the owner (or spouse of the
owner) agrees to: (a) comply with all brand protection covenants, covenants that protect our intellectual property and transfer restrictions in the Franchise Agreement; and (b) guarantee the franchisee's financial obligations.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a franchisee appoints a new Managing Owner, that individual must be approved by Itan and successfully complete the then-current initial training program before assuming responsibility for managing the Salon. The Managing Owner is the owner with overall responsibility for the management and operation of the Itan Salon.
The Managing Owner must dedicate full-time efforts to the business and, at all times, hold at least a 20% ownership interest in the franchise (or the entity that is the franchisee) unless Itan waives this requirement. However, the Managing Owner is not required to provide onsite management of the Salon as long as a trained manager is onsite.
Itan may also require the Managing Owner to attend system-wide refresher or supplemental training courses from time to time. If Itan inspects the Salon and determines that it is not operating in compliance with the Franchise Agreement and the Manual, Itan may require that the Managing Owner attend remedial training relevant to the operational deficiencies observed. Itan provides its preopening initial training program at no additional charge. However, Itan charges an initial training fee of $1,500 for each person sent to initial training after the Salon opens.