What is an 'Itan Successor Agreement' and when is it required?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
"Successor Agreement" means our then-current form of iTAN Franchise Agreement you must sign pursuant to §4.2 in connection with a renewal of your franchise rights.
4.1. Generally. This Agreement grants you the right to operate your Salon during the Term. You may renew your franchise rights by signing a Successor Agreement for a five (5) year renewal term. You may enter into a maximum of two (2) Successor Agreements. The parties may agree to further renewals after expiration of the second (2nd) renewal term, but neither party is obligated to do so (unless required by applicable Law, in which case the same renewal terms and conditions set forth in this Agreement shall apply to subsequent renewals). In order to sign a Successor Agreement you must satisfy all renewal conditions specified in this Agreement or the Successor Agreement you wish to renew, as applicable. The Successor Agreement shall be the current form of franchise agreement we use to grant franchises as of the expiration of the Term or renewal term, as applicable, the terms of which may vary materially and substantially from the terms of this Agreement. Upon renewal, we reserve the right to modify the boundaries of your Territory in accordance with our then-current territory guidelines and criteria. If this Agreement is a Successor Agreement, the Term of this Agreement and your remaining renewal rights, if any, shall be governed by your original franchise agreement
4.2. Renewal Requirements. In order to renew, you and the Owners (as applicable) must:
- (a) send us a notice of your intent to enter into a Successor Agreement not less than 240 days nor more than one (1) year before the expiration of the Term or renewal term, as applicable;
- (b) not be in default under any Definitive Agreement at the time you send the renewal notice or sign the Successor Agreement;
- (c) sign the Successor Agreement and all ancillary documents we require franchisees to sign;
- (d) sign a General Release;
- (e) pay us a $1,000 renewal fee;
- (f) remodel the Salon and upgrade all furniture, fixtures and equipment to conform to our thencurrent standards and specifications; and
- (g) extend the term of your lease for the duration of the renewal term.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a Successor Agreement is the current form of the Itan Franchise Agreement that a franchisee must sign to renew their franchise rights, as detailed in Section 4.2 of the agreement. This agreement allows a franchisee to continue operating their salon beyond the initial term.
The Successor Agreement is required when a franchisee wants to renew their franchise rights. The initial franchise agreement grants the right to operate the salon for a specific term, and renewal is possible by signing a Successor Agreement for an additional five-year term. A franchisee can enter into a maximum of two Successor Agreements, with further renewals possible only if both parties agree, unless applicable law requires otherwise.
To be eligible for a Successor Agreement, the franchisee must meet several conditions. They must notify Itan of their intent to renew between 240 days and one year before the current term expires. The franchisee must not be in default under any existing agreements at the time of renewal. Additionally, they must sign the Successor Agreement and any related documents, sign a general release, pay a $1,000 renewal fee, remodel the salon to meet current standards, and extend the lease for the renewal term. The terms of the Successor Agreement may differ significantly from the original agreement, and Itan reserves the right to modify the territory boundaries upon renewal.