Does Itan have an obligation to offer you the same negotiated terms or concessions offered to other area developers?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.2. General Representations. You and your Owners jointly and severally represent and warrant to us that: (a) other area developers may operate under different forms of agreement and our obligations and rights with respect to area developers differs materially in certain circumstances; and (b) we may negotiate terms or offer concessions to other area developers and we have no obligation to offer you the same or similar negotiated terms or concessions.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan is not obligated to offer the same or similar negotiated terms or concessions to all area developers. The document states that Itan may negotiate terms or offer concessions to other area developers, but this does not create an obligation to extend those same terms to you as a prospective area developer.
This means that the terms of your Area Development Agreement with Itan could be different from those offered to other developers. Factors influencing these differences could include the size and location of the development territory, the number of salons you commit to opening, your experience, and your negotiated skills.
As a potential franchisee, it is crucial to understand that the terms offered to others do not set a precedent for your agreement. You should carefully review and negotiate the terms of your agreement with Itan, focusing on what is best for your specific circumstances. Do not assume that you will receive the same deal as other area developers.