Does Itan's site approval constitute a warranty of the site's suitability for a Salon?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Our approval of a site is not a representation or warranty of any kind, express or implied, of the suitability of the site for a Salon. It only means we believe the site meets our minimum criteria.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchisor's approval of a site for a Salon does not constitute a warranty of the site's suitability. Itan states explicitly that its approval of a site is not a representation or warranty of any kind, whether express or implied, regarding the site's suitability for an Itan Salon. The approval only indicates that Itan believes the site meets its minimum criteria.
This means that while Itan must approve the site, the franchisee bears the ultimate responsibility for ensuring the location is appropriate for their business. Itan's approval is simply an acknowledgement that the site meets their basic requirements, not a guarantee of success or suitability.
Prospective franchisees should carefully evaluate potential sites, conduct thorough due diligence, and consider factors beyond Itan's minimum criteria. This could include assessing local market demographics, traffic patterns, competition, and other factors that could impact the Salon's performance. Franchisees may want to engage their own experts to assess a site's potential and suitability, as Itan does not warrant the location's fitness for the business.