Does Itan modify the Territory based on population changes during the Term?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not modify your Territory based on population changes during the Term.
If we approve the site for your Salon before signing this Agreement, we will describe your Territory in Part E of ATTACHMENT "A".
Otherwise, we will describe
your Territory in the Site Approval Notice we send to you after approving your site. During the Term we will not develop or operate, or license a third party to develop or operate, a Salon that is located in the Territory except as otherwise provided in this Section with respect to Acquisitions. At any time during the Term we reserve the right to engage in Acquisitions that involve, or subsequently result in, conversion of the acquired or acquiring company's outlets to ITAN™ Salons, even if those outlets are located in your Territory. We reserve the right to 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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan does not modify a franchisee's territory based on population changes during the term of the agreement. The territory is defined either in Part E of ATTACHMENT "A" if the site is approved before signing the agreement, or in the Site Approval Notice sent after site approval.
Even if the boundaries defining the territory change during the term, the franchisee's territory remains as it was defined on the effective date. However, Itan retains the right to engage in acquisitions that could result in the conversion of other companies' outlets to Itan salons, even if those outlets are located within the franchisee's territory. Itan also reserves the right to sell, and license third parties to sell, competitive or identical goods and services within the territory through alternative channels of distribution.
This policy provides clarity for franchisees, as their territory is fixed from the start of the agreement, regardless of population shifts. However, franchisees should be aware that Itan retains the right to establish alternative channels of distribution and make acquisitions within their territory, which could impact their business.