How many consecutive successor franchise agreements can an Itan franchisee enter into?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
sell, and license third parties to sell, competitive or identical goods and services (including under the Marks) within the Territory through Alternative Channels of Distribution.
4. TERM AND RENEWAL.
- 4.1. Generally. This Agreement grants you the right to operate your Salon during the Term. You may renew your franchise rights by signing a Successor Agreement for a five (5) year renewal term. You may enter into a maximum of two (2) Successor Agreements. The parties may agree to further renewals after expiration of the second (2nd) renewal term, but neither party is obligated to do so (unless required by applicable Law, in which case the same renewal terms and conditions set forth in this Agreement shall apply to subsequent renewals). In order to sign a Successor Agreement you must satisfy all renewal conditions specified in this Agreement or the Successor Agreement you wish to renew, as applicable. The Successor Agreement shall be the current form of franchise agreement we use to grant franchises as of the expiration of the Term or renewal term, as applicable, the terms of which may vary materially and substantially from the terms of this Agreement. Upon renewal, we reserve the right to modify the boundaries of your Territory in accordance with our then-current territory guidelines and criteria. If this Agreement is a Successor Agreement, the Term of this Agreement and your remaining renewal rights, if any, shall be governed by your original franchise agreement
- 4.2. Renewal Requirements. In order to renew, you and the Owners (as applicable) must:
- (a) send us a notice of your intent to enter into a Successor Agreement not less than 240 days nor more than one (1) year before the expiration of the Term or renewal term, as applicable;
- (b) not be in default under any Definitive Agreement at the time you send the renewal notice or sign the Successor Agreement;
- (c) sign the Successor Agreement and all ancillary documents we require franchisees to sign;
- (d) sign a General Release;
- (e) pay us a $1,000 renewal fee;
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–39)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee can enter into a maximum of two consecutive successor franchise agreements, each with a term of 5 years. After the second renewal term expires, both parties may mutually agree to further renewals, but neither party is obligated to do so, unless required by applicable law. If required by law, the same renewal terms and conditions set forth in the agreement shall apply to subsequent renewals.
To renew the franchise agreement, the franchisee must meet specific conditions. These include sending a notice of intent to renew between 240 days and one year before the current term expires, not being in default under any agreements, signing the current form of the successor agreement and all required ancillary documents, and signing a general release. Additionally, the franchisee must pay a $1,000 renewal fee, remodel the salon to meet Itan's current standards, and extend the lease for the duration of the renewal term.
The successor agreement that the franchisee signs will be Itan's current form of franchise agreement at the time of renewal, which may have materially different terms from the original agreement. Itan also reserves the right to modify the franchisee's territory according to its then-current guidelines upon renewal. If the current agreement is already a successor agreement, the term and any remaining renewal rights will be governed by the original franchise agreement.