What sections of the Itan Franchise Agreement outline the process for transfer of an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
"Transfer" means any direct or indirect, voluntary or involuntary, assignment, sale, conveyance, subdivision, sublicense or other transfer or disposition of:
(a) this Agreement (or any interest therein);
(b) the franchise or intellectual property rights granted by this Agreement (or any interest therein);
(c) the Business you conduct pursuant to this Agreement (or any interest therein);
(d) the Salon's assets, other than the sale of fixtures or equipment in the ordinary course of business; or
(e) an Equity Interest in the Business or Franchisee Entity;
The rights of the parties under this Agreement are cumulative and no exercise or enforcement by either party of any right or remedy under this Agreement will preclude any other right or remedy available under this Agreement or by Law.
- 24.11.Survival.
All provisions that expressly or by their nature survive the termination, expiration or Transfer of this Agreement, or the Transfer of an ownership interest in the Salon or Franchisee Entity, shall continue in full force and effect subsequent to and notwithstanding its termination, expiration or Transfer and until they are satisfied in full or by their nature expire, including, without limitation, §13, §14, §16, §18, §21, §22 and §24.
Background
- B. You have notified us of your desire to transfer the Franchise Agreement and all rights related thereto, or an ownership interest in the franchisee entity, to a transferee, [enter into a successor franchise agreement] and we have consented to such transfer [agreed to enter into a successor franchise agreement].
- C. As a condition to our consent to the transfer [your ability to enter into a successor franchise agreement], you and Owner have agreed to execute this Agreement upon the terms and conditions stated below.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 21–22)
What This Means (2025 FDD)
According to the 2025 Itan Franchise Disclosure Document, the definition of "Transfer" is outlined in Section 23. This section defines "Transfer" as any direct or indirect, voluntary or involuntary, assignment, sale, conveyance, subdivision, sublicense or other transfer or disposition of the agreement, franchise rights, the business, the Salon's assets or an equity interest in the business or Franchisee Entity.
Additionally, Section 24.11 addresses the survival of certain provisions upon the transfer of the agreement or ownership interest. It states that provisions that expressly or by their nature survive the termination, expiration, or transfer of the agreement, or the transfer of an ownership interest in the Salon or Franchisee Entity, will remain in effect. These include sections pertaining to confidentiality, non-competition, indemnification, and other key obligations.
Furthermore, in situations where a franchisee wishes to transfer their franchise agreement, Itan may require the franchisee and the new owner to execute an agreement as a condition of Itan's consent to the transfer. This agreement ensures that all parties are aligned and that the transfer meets Itan's standards and requirements.