What is the radius, in miles, of the 'Restricted Territory' around an Itan Salon?

According to Itan's 2025 Franchise Disclosure Document, the 'Restricted Territory' is defined as the geographic area within a 10-mile radius of an Itan Salon. This radius extends from both the franchisee's salon premises and all other Itan Salons that are either operating or under construction when the post-term restricted period begins. This means that after a franchisee's agreement ends, they are restricted from operating a competing business within this 10-mile radius.

However, there is a condition that could alter the size of the restricted territory. If a court of competent jurisdiction determines that the 10-mile radius is too broad to be enforceable, the restricted territory will then be defined as the geographic area within a 10-mile radius solely from the franchisee's salon, including the salon's premises. This implies that the enforceability of the initial restricted territory definition is subject to legal review and could be reduced based on a court's decision.

This definition of the 'Restricted Territory' is important for prospective franchisees to understand, as it directly impacts their ability to operate a competing business after their franchise agreement with Itan ends. The initial definition includes a broader area considering other existing or in-progress Itan Salons, while the alternative definition focuses solely on the franchisee's salon. Franchisees should be aware of the potential for legal challenges to the initial definition and the implications of a reduced restricted territory.