factual

Does Itan require a separate Franchise Agreement for each Salon?

Itan Franchise · 2025 FDD

Answer 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, a franchisee must sign a separate Franchise Agreement for each salon they operate. Specifically, the FDD states that the franchisee must sign an Initial Franchise Agreement for their first salon when they sign the overall agreement. Itan will not review proposed sites for a salon until the franchisee signs the applicable Franchise Agreement for that salon.

This requirement means that each Itan salon operated by a franchisee is governed by its own individual agreement, allowing for potential variations in terms. The terms of each franchise agreement may differ materially and substantially from the terms of the Initial Franchise Agreement. However, the initial franchise fee imposed under each Franchise Agreement executed pursuant to this Agreement shall be determined in accordance with §5.3.

This stipulation provides Itan with flexibility in adapting franchise terms to specific locations or market conditions. For a prospective franchisee, this means carefully reviewing each Franchise Agreement to understand its unique obligations and rights. It is important to note that a franchisee cannot begin construction or operation of a salon until both parties have signed the Franchise Agreement and all ancillary agreements for that salon. The franchisee must also develop, open, and operate each salon in compliance with both the Franchise Agreement and the Itan Manual.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.