How many Successor Agreements can an Itan franchisee enter into?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee can enter into a maximum of two Successor Agreements, each for a five-year renewal term. After the expiration of the second renewal term, both parties can agree to further renewals, but neither is obligated to do so unless required by law. If required by law, the same renewal terms and conditions apply to subsequent renewals.
To qualify for a Successor Agreement, the franchisee must meet specific renewal conditions. These include sending a renewal notice 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 related documents, providing a General Release, paying a $1,000 renewal fee, remodeling the salon to meet current standards, and extending the lease for the renewal term.
It's important to note that the terms of the Successor Agreement may differ significantly from the original agreement. Upon renewal, Itan reserves the right to modify the franchisee's territory according to its current guidelines. Additionally, if the current agreement is already a Successor Agreement, the term and any remaining renewal rights are governed by the original franchise agreement.