Is landlord consent required for the assignment of the lease in an Itan franchise transfer?

According to Itan's 2025 Franchise Disclosure Document, landlord consent is required for the assignment of the lease to a transferee during a franchise transfer. Specifically, Itan will not unreasonably withhold approval of a proposed transfer if several conditions are met, including that the landlord consents to the lease assignment.

This requirement means that a prospective Itan franchisee looking to acquire an existing Itan location must ensure the current franchisee obtains landlord consent as part of the transfer process. This adds a layer of complexity to the transfer, as the landlord's approval is outside the direct control of both the franchisor and franchisee. The transferee must diligently pursue an approved substitute location within the Site Selection Area if the landlord does not consent to the assignment of the lease.

Itan also outlines other conditions that must be satisfied for a transfer to be approved, such as the transferee demonstrating sufficient business experience and financial resources, completing the initial training program, and agreeing to remodel the salon to current standards. Additionally, a $10,000 transfer fee must be paid to Itan, and the transferee must sign Itan's current form of franchise agreement. Meeting all these conditions, including obtaining landlord consent, is crucial for a smooth and successful franchise transfer with Itan.