Does Itan require franchisees to sign a separate Franchise Agreement for each Salon?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2. Franchise Agreements. You must sign a separate Franchise Agreement for each Salon. You must sign the Initial Franchise Agreement for your first (1st) Required Salon at the time you sign this Agreement. We will not review proposed sites for a Salon until you sign the applicable Franchise Agreement for that Salon. Each Franchise Agreement shall be our then-current form of iTAN Franchise Agreement, the terms of which may vary materially and substantially from the terms of the Initial Franchise Agreement; provided, however, that the initial franchise fee imposed under each Franchise Agreement executed pursuant to this Agreement shall be determined in accordance with §5.3. You have no right to construct or operate a Salon until the parties have signed the Franchise Agreement and all ancillary agreements for that Salon. You must develop, open and operate each Salon in compliance with the Franchise Agreement and the Manual.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are required to sign a separate Franchise Agreement for each salon they operate. The FDD specifies that a franchisee must sign an Initial Franchise Agreement for their first salon when they sign the overall agreement. Itan will not review proposed sites for any subsequent salon until the franchisee has signed the Franchise Agreement applicable to that specific salon.
This requirement means that franchisees looking to open multiple Itan locations must go through the agreement process for each individual site. The terms of each Franchise Agreement may also vary materially and substantially from the Initial Franchise Agreement. However, the initial franchise fee imposed under each Franchise Agreement will be determined according to a specific section (§5.3) outlined in the agreement.
This stipulation ensures that Itan maintains control over each location and can tailor the agreement to the specific circumstances of each salon. It also means that franchisees must be prepared for potentially different terms and conditions for each location they open, adding complexity to multi-unit franchise ownership. Franchisees do not have the right to operate a salon until both parties have signed the Franchise Agreement and all ancillary agreements for that salon.