What representation does an Itan franchisee make regarding the Development Schedule?

According to Itan's 2025 Franchise Disclosure Document, a franchisee, upon entering into an Area Development Agreement, commits to specific obligations regarding the development of Itan salons. The franchisee must adhere to a 'Development Schedule,' as detailed in Section 4 of the Area Development Agreement and Part C of ATTACHMENT 'A'.

This schedule outlines the minimum requirements for opening 'Required Salons' within a defined 'Development Territory.' The franchisee is granted the right and obligation to develop, open, and operate these 'Required Salons' according to the Development Schedule. Additionally, the franchisee has the option, but not the obligation, to develop and operate additional 'Optional Salons' within the same territory during the term of the agreement, as per Section 4.2.

The Development Schedule is a critical component of the Area Development Agreement, setting forth the pace at which the franchisee must establish Itan locations. Failing to meet these obligations could potentially result in a breach of contract. Prospective franchisees should carefully review the Development Schedule, assess their ability to meet the specified milestones, and understand the implications of not fulfilling these requirements.