During an Itan Salon inspection, is Itan permitted to contact the franchisee's landlord?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. On [__________________], 202[], Franchisor and Tenant executed an iTAN® Franchise Agreement (the "Franchise Agreement"), pursuant to which Franchisor granted Tenant the right and obligation to develop, open and operate an iTAN® salon at the premises described in Exhibit "A" (the "Premises").
- B. Concurrently with the execution of this Agreement, Landlord and Tenant are executing a lease agreement (the "Lease"), pursuant to which Landlord will lease the Premises to Tenant.
- C. To protect Franchisor's rights and interests under the Franchise Agreement, Landlord agrees to grant certain rights to Franchisor as set forth below.
Agreement
- Default Notices. Landlord agrees to provide Franchisor with copies of all written default notices sent to Tenant at the same time such notices are sent to Tenant. Landlord agrees to send such copies to Franchisor by email and registered mail as set forth below (Franchisor may change the notice email and address from time to time by sending written notice to Landlord):
Mail: iTAN Franchising, Inc.
1784 La Costa Meadows Dr., #101, San Marcos, California 92078
Attention: Faraje Kharsa Email: Faraje@itan.com
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan has the right to communicate with the franchisee's landlord under specific circumstances, primarily related to defaults or lease-related issues. Specifically, the landlord agrees to provide Itan with copies of all written default notices sent to the tenant (the franchisee) at the same time they are sent to the franchisee. These notices are to be sent to Itan via email and registered mail, with the contact information provided in the document. Itan retains the right to update this contact information by providing written notice to the landlord.
This arrangement protects Itan's interests under the Franchise Agreement by ensuring they are informed of any lease defaults, giving them an opportunity to intervene and protect their investment. For a prospective franchisee, this means that Itan will be kept in the loop regarding their lease obligations and any potential issues that may arise. This could be beneficial, as Itan might offer assistance or solutions to resolve lease-related problems, but it also means the franchisee's landlord will communicate with Itan about the franchisee's business.
Furthermore, Itan has rights related to curing defaults, assignment of the lease, and first refusal rights, all of which necessitate communication with the landlord. The lease addendum ensures that the landlord acknowledges Itan's rights and interests, creating a direct line of communication when necessary. This setup is designed to safeguard Itan's franchise network and maintain brand consistency, but franchisees should be aware of this communication channel and ensure they maintain a positive relationship with their landlord to avoid unnecessary complications.