What instructions must an Itan franchisee follow regarding the Manual, Copyrighted Materials, signs, and promotional materials after termination, expiration, or transfer?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (g) comply with our instructions to return, destroy or transfer all copies of the Manual and Copyrighted Materials and all signs, brochures, advertising and promotional materials, forms and other materials bearing the Marks or containing Confidential Information;
- (h) alter the interior and exterior of the premises to the extent necessary, or to the extent we require, to prevent any further resemblance to or connection with a Salon or our System, including repainting the exterior and interior with new colors and removing trade dress, fixtures, signage, window decals and décor items associated with a Salon;
- (i) notify all telephone, listing and domain name registration companies of the termination or expiration of your right to use: (i) any telephone numbers and/or domain names associated with your Salon; and (ii) any regular, classified or other telephone directory listings associated with the Marks (you hereby authorize the foregoing companies to transfer such telephone numbers, domain names and listings to us and you authorize us, and appoint us and any officer we designate as your attorney-in-fact to direct these companies to transfer the telephone numbers, domain names and listings to us if you fail or refuse to do so);
- (j) provide us with satisfactory evidence of your compliance with the above obligations within 30 days after the effective date of the termination, expiration or Transfer of this Agreement.
Subsections (f), (g), (h) and (i) above do not apply if you Transfer your Salon to an approved transferee or we exercise our right to purchase your Salon. If an Owner transfers his or her entire Equity Interest in the Business or Franchisee Entity but you continue to operate the Salon pursuant to this Agreement, then this Section will not apply to you (or to any remaining Owner) and the former Owner is subject only to the obligations set forth in subsections (a) and (b).
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if the franchise agreement is terminated, expires, or is transferred, the franchisee must comply with specific instructions regarding the Manual, Copyrighted Materials, signs, and promotional materials. Specifically, the franchisee must follow Itan's instructions to either return, destroy, or transfer all copies of the Manual, Copyrighted Materials, signs, brochures, advertising and promotional materials, forms, and other materials that bear Itan's Marks or contain confidential information.
Additionally, the franchisee is obligated to alter both the interior and exterior of the premises to a degree necessary to prevent any resemblance to or connection with an Itan Salon or the Itan System. This includes repainting the interior and exterior with new colors and removing trade dress, fixtures, signage, window decals, and décor items associated with the Salon. The franchisee must also notify all relevant telephone, listing, and domain name registration companies about the termination or expiration of their right to use any telephone numbers and/or domain names associated with the Salon, as well as any telephone directory listings associated with Itan's Marks. The franchisee authorizes Itan to direct these companies to transfer such telephone numbers, domain names, and listings to Itan if the franchisee fails or refuses to do so.
Finally, the franchisee must provide Itan with satisfactory evidence of their compliance with these obligations within 30 days after the effective date of the termination, expiration, or transfer of the franchise agreement. These obligations do not apply if the franchisee transfers their Salon to an approved transferee or if Itan exercises its right to purchase the Salon. Also, if an owner transfers their entire equity interest but the franchisee continues to operate the Salon under the agreement, these specific obligations will not apply to the franchisee or any remaining owner; the former owner is then only subject to obligations related to non-compete and confidentiality.