What is the renewal fee for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We reserve the right to sell, and license third parties to sell, competitive or identical goods and services (including under the Marks) within the Territory through Alternative Channels of Distribution.
4. TERM AND RENEWAL.
- 4.1. Generally. This Agreement grants you the right to operate your Salon during the Term. You may renew your franchise rights by signing a Successor Agreement for a five (5) year renewal term. You may enter into a maximum of two (2) Successor Agreements. The parties may agree to further renewals after expiration of the second (2nd) renewal term, but neither party is obligated to do so (unless required by applicable Law, in which case the same renewal terms and conditions set forth in this Agreement shall apply to subsequent renewals). In order to sign a Successor Agreement you must satisfy all renewal conditions specified in this Agreement or the Successor Agreement you wish to renew, as applicable. The Successor Agreement shall be the current form of franchise agreement we use to grant franchises as of the expiration of the Term or renewal term, as applicable, the terms of which may vary materially and substantially from the terms of this Agreement. Upon renewal, we reserve the right to modify the boundaries of your Territory in accordance with our then-current territory guidelines and criteria. If this Agreement is a Successor Agreement, the Term of this Agreement and your remaining renewal rights, if any, shall be governed by your original franchise agreement
- 4.2. Renewal Requirements. In order to renew, you and the Owners (as applicable) must:
- (a) send us a notice of your intent to enter into a Successor Agreement not less than 240 days nor more than one (1) year before the expiration of the Term or renewal term, as applicable;
- (b) not be in default under any Definitive Agreement at the time you send the renewal notice or sign the Successor Agreement;
- (c) sign the Successor Agreement and all ancillary documents we require franchisees to sign;
- (d) sign a General Release;
- (e) pay us a $1,000 renewal fee;
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must pay a $1,000 renewal fee if they choose to renew their franchise agreement. This fee is one of several conditions that must be met to qualify for renewal. The initial franchise agreement grants the right to operate the salon for a specific term, and franchisees can renew this right by signing a Successor Agreement for an additional five-year term. A maximum of two Successor Agreements are allowed. The terms of the Successor Agreement may differ significantly from the original agreement. Upon renewal, Itan retains the right to modify the franchisee's territory according to its current guidelines.
To renew the franchise agreement with Itan, franchisees must meet several requirements. They must send a notice of intent to renew between 240 days and one year before the current term expires. Franchisees must not be in default under any existing agreements at the time of renewal. They are also required to sign the Successor Agreement and any related documents, as well as a general release.
In addition to the $1,000 renewal fee, franchisees must remodel the salon and upgrade all furniture, fixtures, and equipment to meet Itan's current standards. They must also extend the term of their lease to cover the duration of the renewal term. These conditions ensure that the Itan franchise maintains a consistent brand image and operational standard, but they also represent a significant investment for the franchisee at the time of renewal.