If a franchisee signs an Area Development Agreement with Itan, is a copy included in the FDD?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
If you satisfy our criteria for multi-unit developers, we may (but need not) offer you the right to sign the form of Area Development Agreement attached to this Disclosure Document as EXHIBIT "D" (the "ADA"). The ADA grants you the right and obligation to develop, open and operate multiple Salons within a defined "development territory" according to a predetermined "development schedule". You must commit to develop, open and operate a minimum of 3 Salons in order to sign an ADA. You must develop, open and operate all of the Salons identified in the development schedule. You must sign a separate franchise agreement for each Salon you develop. Each franchise agreement will be our then-current form of franchise agreement, which may be different than the form of Franchise Agreement attached to this Disclosure Document.
Source: Item 22 — CONTRACTS (FDD pages 43–44)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a franchisee meets the criteria for multi-unit developers, Itan may offer the right to sign the Area Development Agreement (ADA). The FDD states that the form of Area Development Agreement is attached to the Disclosure Document as EXHIBIT "D".
The ADA grants the franchisee the right and obligation to develop, open, and operate multiple Itan salons within a defined "development territory" according to a predetermined "development schedule". To be eligible to sign an ADA, a franchisee must commit to developing, opening, and operating a minimum of 3 salons.
Each franchise agreement signed under the Area Development Agreement will be Itan's then-current form of franchise agreement, which may differ from the franchise agreement included in the FDD. This means that the specific terms and conditions for each individual Itan salon operated under the ADA could vary from the standard franchise agreement initially reviewed.