Where must all Salons developed by an Itan area developer be located?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
then-current territory guidelines and criteria.
Description of Development Territory (ADA)
If you acquire area development rights, we will identify the boundaries of your development territory in Part D of ATTACHMENT "A" to your ADA. A development territory typically consists of a geographic area that coincides with the boundaries of a municipality, such as a city, county or state. However, we may define a development territory in any other manner we deem appropriate, such as by map, zip codes, designated market areas, etc. There is no specific minimum or maximum size for a development territory. In determining the size of your development territory, we primarily consider the number of Salons you commit to develop.
You must sign a separate Franchise Agreement for each Salon you develop. All Salons you develop must be located in your development territory. We must approve the site for each Salon you develop under our thencurrent site selection criteria. We send you a complete execution copy of the ADA that includes your development territory, development fee and development schedule at least 7 days before you sign it.
Source: Item 12 — TERRITORY (FDD pages 31–33)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if you acquire area development rights as an Itan area developer, all Salons you develop must be located within your designated development territory. This territory's boundaries are defined in Part D of ATTACHMENT "A" to your Area Development Agreement (ADA). The development territory typically aligns with a municipality's boundaries, such as a city, county, or state, but Itan can define it in other ways like by map, zip codes, or designated market areas. The size of the territory is determined primarily by the number of Salons you commit to developing.
Itan must approve the site for each Salon you develop based on their current site selection criteria. The complete, executed copy of the ADA, including details of your development territory, the development fee, and the development schedule, will be provided to you at least 7 days before you are required to sign the agreement.
It is important to note that if you fail to meet the development schedule by not opening and operating the required number of Salons within the specified timeframe, Itan has the right to terminate your ADA. If this occurs, you will lose the territorial protections associated with your development territory. This highlights the importance of carefully assessing your ability to meet the development schedule before signing an ADA with Itan.