What is the purpose of modifying the Franchise Agreement in relation to the Itan conversion?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. You currently own and operate a business (the "Current Business") from the premises located at the address listed in Part A of Attachment A to this Addendum (the "Premises").
- B. The Current Business offers services that are similar to the services offered by an iTAN salon.
- C. You desire to acquire an iTAN franchise for purposes of converting your Current Business to an iTAN Salon and we are willing to grant you the right and obligation to do so.
- D. Concurrently with the execution of this Addendum, the Parties are entering into an iTAN Franchise Agreement (the "Franchise Agreement"), pursuant to which we will grant you the right and obligation to convert the Current Business to an iTAN Salon that operates in accordance with our System and features tanning, beauty and wellness services (e.g., FIT Bodywrap®, aqua massage, teeth whitening, salt therapy, photo light therapy and other approved services) and sells related retail items under our Marks (your "ITAN Salon").
- E. In order to effectuate the conversion of your Current Business to an iTAN Salon, the Parties desire to modify the Franchise Agreement according to the terms and conditions set forth herein.
- F. In consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, and intending to be legally bound, the Parties hereby agree to the terms and conditions set forth below.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to the 2025 Itan FDD, the modification of the Franchise Agreement is to facilitate the conversion of an existing business into an Itan salon. The franchisee already owns and operates a business offering similar services to Itan. The franchisee desires to acquire an Itan franchise to convert their current business into an Itan salon, and Itan is willing to grant them the right and obligation to do so. The addendum modifies the Franchise Agreement to effectuate this conversion, outlining the terms and conditions specific to the conversion process.
The conversion process involves several key steps and requirements. The franchisee must meet a conversion completion deadline as outlined in Attachment B of the addendum. The franchisee is also responsible for re-imaging, remodeling, renovating, refurbishing, and modernizing the premises to comply with Itan's standards and specifications, including design, layout, construction materials, furniture, fixtures, equipment, and signage. These modifications are at the franchisee's sole expense, although Itan may limit the required remodeling to reduce conversion costs at its discretion.
Several clauses address the relationship between the addendum and the original franchise agreement. The addendum and the Franchise Agreement constitute the entire agreement between the parties regarding the conversion. Except as specifically modified or supplemented by the addendum, all terms and conditions of the Franchise Agreement remain in full effect. In case of any inconsistencies between the Franchise Agreement and the addendum, the terms of the addendum will prevail. This ensures that the conversion process is governed by the specific terms agreed upon for the conversion while maintaining the integrity of the original Franchise Agreement where applicable.