Will Itan review proposed sites for a Salon before the Franchise Agreement is signed?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
and analysis of the prospects for development of the Required Salons in the Development Territory; (b) approve the Development Schedule as being reasonable and viable; and (c) recognize that a breach of the Development Schedule is a material breach of this Agreement.
5. DEVELOPMENT AND OPERATION OF SALONS
- 5.1. Site Selection. You must select a specific site within the Development Territory for each Salon in compliance with our then-current site selection criteria. Each site you select is subject to our prior approval in accordance with the applicable Franchise Agreement.
- 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.
- 5.3. Initial Franchise Fees. The initial franchise fee imposed under each Franchise Agreement executed pursuant to this Agreement shall be as follows:
| INITIAL FRANCHISE FEE & DEVELOPMENT FEE | ||||||
|---|---|---|---|---|---|---|
| Salon | Initial Franchise Fee | |||||
| Salon 1 | $49,500 | N/A – 3 unit minimum for ADA | ||||
| Salon 2 | $42,000 | N/A – 3 unit minimum for ADA | ||||
| Salon 3 | $38,000 | $129,500 | ||||
| S |
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan will not review proposed sites for a salon until after the Franchise Agreement is signed. However, if Itan approves a site before the agreement is signed, the address of the approved site will be listed in Part D of ATTACHMENT "A".
After the Franchise Agreement is signed, the franchisee has 90 days to identify and secure Itan's approval of a site for their salon. The site must be within the designated Site Selection Area and meet Itan's minimum site selection criteria. The franchisee is required to submit a complete site report, including all necessary documents, information, photos, and videos, for Itan's review.
Itan has the discretion to either accept or reject proposed sites based on their commercially reasonable judgment. Itan aims to notify the franchisee of their decision within 30 days of receiving all required materials. If approval is not issued within this 30-day period, the site is considered disapproved. Upon approval, if the site was not approved before signing the agreement, Itan will send a Site Approval Notice within 15 days, which the franchisee must acknowledge.