How many licensing arrangements did Kharsa Holdings, Inc. enter into before Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not have any affiliates that offer (or have ever offered) franchises in this or any other line of business. However, our affiliate Kharsa Holdings, Inc. ("Kharsa") offered licenses to operate Salons from June 2004 until October 2007. During that time, Kharsa entered into a total of 13 licensing arrangements. These licenses may have qualified as franchises under California law. All licensees subsequently signed franchise agreements with us. Kharsa shares our principal business address. Kharsa operated all of our company-owned Salons from April 2001 until December 2023 when they were sold to a franchisee.
Source: Item 1 — FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–9)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Kharsa Holdings, Inc., an affiliate of Itan Franchising, Inc., entered into a total of 13 licensing arrangements to operate Salons between June 2004 and October 2007. These licenses may have qualified as franchises under California law.
These licensing arrangements predate Itan's franchising activities, as Itan Franchising, Inc. was incorporated in April 2008 and began offering franchises for Salons in the same year. All licensees subsequently signed franchise agreements with Itan.
This historical context indicates that Itan's business model evolved from a licensing approach under Kharsa Holdings to a franchise model under Itan Franchising, Inc. This transition suggests a strategic shift in how the company expanded and managed its brand. The fact that all licensees transitioned to franchise agreements with Itan implies a formalization and standardization of the business operations under the Itan brand.