What sections of the Itan Franchise Agreement outline the franchisee's obligations for ongoing product/service purchases?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| OBLIGATION | SECTIONS IN AGREEMENT | DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| a. Site selection and acquisition/lease | FA: 7.1 & 7.2 ADA: 5.1 | Item 7 & Item 11 |
| b. Pre-opening purchases/leases | FA: 6.2, 7.3, 11.7 & 15.1 ADA: Not Applicable | Item 5, Item 7, Item 8 & Item 11 |
| c. Site development and other pre | FA: 7.3 & 7.4 | Item 6, Item 7 & Item 11 |
| opening requirements | ADA: 5.1 & 5.2 | |
| d. Initial and ongoing training | FA: 5 ADA: Not Applicable | Item 6 & Item 11 |
| e. Opening | FA: 7.4 ADA: 4 | Item 11 |
| f. Fees | FA: 4.2, 5.4, 5.5, 7.5, 8.4, 10, 11.7, 11.9, 11.11, 11.15, 11.16, 13, 16, 19.2 & 21.3 ADA: 5.3, 6 & 8.2 | Item 5 & Item 6 |
| g. Compliance with standards and | FA: 6.1, 7.1, 7.3, 10.3, 11 & 17.1 | Item 11 |
| policies/Operating Manual | ADA: 5.1 & 5.2 | |
| h. Trademarks and proprietary | FA: 17 | Item 13 & Item 14 |
| information | ADA: 2 | |
| OBLIGATION | SECTIONS IN AGREEMENT | DISCLOSURE DOCUMENT ITEM |
| ------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------- | -------------------------- |
| i. Restrictions on products/services | FA: 11.3 | Item 16 |
| offered | ADA: Not Applicable | |
| j. Warranty and client service | FA: 11.14 | Not Applicable |
| requirements | ADA: Not Applicable | |
| k. Territorial development and sales | FA: Not Applicable | Item 12 |
| quotas | ADA: 4 | |
| l. Ongoing product/service purchases | FA: 6.2, 6.7 & 11.7 ADA: Not Applicable | Item 8 |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 21–22)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including those related to ongoing product and service purchases. Specifically, the table within Item 9 indicates that the sections in the Franchise Agreement (FA) that address ongoing product/service purchases are FA: 6.2, 6.7 & 11.7. The corresponding disclosure document item for this obligation is Item 8.
This means that as an Itan franchisee, you are contractually obligated to adhere to the stipulations outlined in these sections of the Franchise Agreement regarding the purchase of products and services necessary for the operation of your Itan salon. These sections likely detail approved suppliers, minimum purchase quantities, product specifications, and other requirements to ensure brand consistency and quality control across all Itan locations.
Prospective franchisees should carefully review sections 6.2, 6.7, and 11.7 of the Franchise Agreement, in conjunction with Item 8 of the FDD, to fully understand the extent and nature of these obligations. Understanding these requirements is crucial for budgeting and managing the ongoing operational costs of the franchise. It is also important to understand if Itan has any preferred suppliers that you must use and if there are any restrictions on the products or services you can offer.