When does Itan's site approval become effective and binding on the franchisee?

According to Itan's 2025 Franchise Disclosure Document, the approval of the site and designation of the territory becomes immediately effective and binding on the franchisee at the time Itan issues the Site Approval Notice. This holds true even if the franchisee does not send back a signed acknowledgment of the notice. However, Itan's approval of a site does not constitute a representation or warranty of any kind regarding the site's suitability for an Itan Salon. It only signifies that Itan believes the site meets their minimum criteria.

This means that once Itan formally approves a location and sends the Site Approval Notice, the franchisee is committed to that location. The franchisee cannot later claim that the site is unsuitable, provided Itan followed its minimum criteria. This underscores the importance of the franchisee conducting their own due diligence and market research to ensure the site is viable for their business goals before Itan issues the approval.

Prospective Itan franchisees should carefully review Itan's minimum site selection criteria and conduct thorough independent research on any proposed location. Understanding the terms and conditions outlined in the Site Approval Notice is crucial, as the franchisee is bound by Itan's approval from the moment the notice is issued, regardless of whether they formally acknowledge it.