What is the length of each renewal term for an Itan franchise agreement?

According to Itan's 2025 Franchise Disclosure Document, franchisees who meet the renewal conditions can enter into two consecutive successor franchise agreements. Each of these renewal terms will be for a period of 5 years. After these two renewal terms, Itan and the franchisee can mutually agree to further renewals, but neither party is obligated to do so, unless required by law. If further renewals are required by law, the same renewal terms and conditions from the original agreement will apply to these subsequent renewals.

To renew the franchise agreement, the franchisee must meet specific conditions outlined in the agreement. These conditions typically include not being in default of the agreement, providing timely notice of intent to renew, signing the then-current form of the franchise agreement, signing a general release, paying a renewal fee, and upgrading the salon to meet current standards. The new successor agreement that the franchisee signs may contain terms and conditions that are materially different from the original agreement.

It is important for prospective Itan franchisees to understand that the terms of the franchise agreement can change upon renewal. This means that the franchisee may be required to operate under different conditions, potentially affecting their business operations and profitability. Franchisees should carefully review the renewal requirements and the terms of the successor agreement to ensure they are comfortable with the changes before committing to a renewal.