Regarding site selection and acquisition/lease for an Itan franchise, which sections of the Franchise Agreement cover this obligation?

According to Itan's 2025 Franchise Disclosure Document, the franchisee's obligations for site selection and acquisition/lease are detailed in specific sections of the Franchise Agreement (FA) and the Area Development Agreement (ADA). FA sections 7.1 and 7.2, along with ADA section 5.1, outline the requirements for site selection and acquisition or leasing of the Itan salon location. These sections are further referenced in Item 7 and Item 11 of the disclosure document.

These sections likely cover the criteria Itan uses to approve a site, the process for submitting potential locations for approval, and the responsibilities of both Itan and the franchisee in securing a suitable location. For example, Itan may have specific requirements regarding demographics, traffic patterns, visibility, and co-tenants that the site must meet. The franchisee will likely be responsible for identifying potential sites and negotiating the lease or purchase agreement, while Itan will provide guidance and final approval.

Understanding these sections is crucial for prospective Itan franchisees as site selection is a critical factor in the success of the business. A poor location can significantly impact sales and profitability, regardless of how well the salon is managed. Therefore, franchisees should carefully review these sections of the Franchise Agreement and Area Development Agreement and seek clarification from Itan on any aspects that are unclear. It is also advisable to conduct thorough market research and due diligence before committing to a specific location.