What is the minimum coverage amount required for the 'all risk' property insurance policy for an Itan franchise, including coverage for fire, vandalism, and malicious mischief?

According to Itan's 2025 Franchise Disclosure Document, franchisees are required to maintain an "all risk" property insurance policy. This policy must include coverage for fire, vandalism, and malicious mischief. The minimum coverage for this policy must be equal to the full replacement cost of all assets within the salon. These assets include inventory, furniture, fixtures, equipment, and any other property used to operate the Itan salon.

It is important to note that this is the minimum requirement set by Itan, and the document advises franchisees to consider procuring additional coverage to adequately protect their business. Franchisees must provide proof of coverage to Itan prior to opening, within 10 days of policy renewal, and at any other time upon demand.

The insurance policies must be obtained from licensed insurance carriers with a rating of A or better by AM Best. Furthermore, each policy must name Itan and its owners, officers, and directors as additional insureds, waive all subrogation rights against Itan, and provide Itan with at least 30 days' prior written notice of any termination, expiration, cancellation, or modification of the policy. Itan retains the right to disapprove any policy that does not meet these criteria, and franchisees must then secure a new policy that complies with Itan's requirements. Itan also has the option to increase the minimum liability coverage amount or require different or additional types of insurance due to factors such as inflation or changes in law.