How much notice is required to terminate the 'Interim Term' of an Itan franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
4.3. Interim Term. If you do not sign a Successor Agreement but continue to operate your Salon after the Term expires, we may either treat this Agreement as: (a) expired as of the Term expiration date with you operating in violation of our rights; or (b) continued on a month-to-month basis (the "Interim Term") until either party provides the other party with 30 days' prior notice of termination of the Interim Term. All your obligations remain in full force and effect during the Interim Term, if
applicable, as if this Agreement had not expired, and all obligations imposed on you upon expiration of the Term will take effect upon termination of the Interim Term.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the 'Interim Term' refers to the period after the initial franchise term expires, and the franchisee continues to operate the salon without signing a Successor Agreement. During this Interim Term, Itan has the option to treat the agreement as either expired or continued on a month-to-month basis. If Itan chooses the latter, either party, whether Itan or the franchisee, can terminate the Interim Term.
The FDD specifies that to terminate the Interim Term, either Itan or the franchisee must provide the other party with 30 days' prior notice. This means that if a franchisee wishes to end the month-to-month arrangement, they must notify Itan at least 30 days in advance. Similarly, Itan must give the franchisee 30 days' notice if they decide to terminate the Interim Term.
This 30-day notice requirement ensures that both parties have adequate time to prepare for the termination of the Interim Term. For the franchisee, this could involve making arrangements to cease operations or negotiating a new agreement with Itan. For Itan, it allows them to find a new franchisee or make other arrangements for the salon location. It is important to note that all obligations remain in full force and effect during the Interim Term, as if the agreement had not expired, and all obligations imposed on the franchisee upon expiration of the Term will take effect upon termination of the Interim Term.