factual

Can the terms of subsequent Itan Franchise Agreements vary from the Initial Franchise Agreement?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 23: RECEIPT]

Background

  • A. You currently own and operate a business (the "Current Business") from the premises located at the address listed in Part A of Attachment A to this Addendum (the "Premises").
  • B. The Current Business offers services that are similar to the services offered by an iTAN salon.
  • C. You desire to acquire an iTAN franchise for purposes of converting your Current Business to an iTAN Salon and we are willing to grant you the right and obligation to do so.
  • D. Concurrently with the execution of this Addendum, the Parties are entering into an iTAN Franchise Agreement (the "Franchise Agreement"), pursuant to which we will grant you the right and obligation to convert the Current Business to an iTAN Salon that operates in accordance with our System and features tanning, beauty and wellness services (e.g., FIT Bodywrap®, aqua massage, teeth whitening, salt therapy, photo light therapy and other approved services) and sells related retail items under our Marks (your "ITAN Salon").
  • E. In order to effectuate the conversion of your Current Business to an iTAN Salon, the Parties desire to modify the Franchise Agreement according to the terms and conditions set forth herein.
  • F. In consideration of the foregoing recitals and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, and intending to be legally bound, the Parties hereby agree to the terms and conditions set forth below.

Agreement

  • **1.

Defined Terms and Section References**.

Any capitalized term that is not defined in this Addendum shall have the meaning given to such term in the Franchise Agreement.

Any reference to "Section" or "Sections" shall refer to the Section or Sections of the Franchise Agreement.

  • **2.

Conversion Date**. [Item 23: RECEIPT]

8. Miscellaneous.

  • (a) Modification. This Addendum and the Franchise Agreement when executed constitute the entire agreement and understanding between the Parties with respect to the subject matter contained herein and therein. Any and all prior agreements and understandings between the Parties and relating to the subject matter contained in this Addendum and the Franchise Agreement, whether written or verbal, other than as contained within the executed Addendum and Franchise Agreement, are void and have no force and effect. In order to be binding between the Parties, any subsequent modifications must be in writing signed by the Parties.
  • (b) Effect on Agreement. Except as specifically modified or supplemented by this Addendum, all terms and conditions set forth in the Franchise Agreement shall remain in full force and effect.
  • (c) Inconsistency. In the event of any inconsistency between the executed Franchise Agreement and this Addendum, this Addendum shall prevail.
  • (d) Counterparts. This Addendum may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute but one and the same document.

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to the 2025 Itan Franchise Disclosure Document, the terms of the Franchise Agreement can be modified through addenda. Specifically, the document mentions a 'Conversion Addendum' used when a franchisee converts an existing business to an Itan salon. This addendum modifies the standard Franchise Agreement to account for the unique circumstances of a conversion.

The Conversion Addendum indicates that the parties, the franchisee and Itan, desire to modify the Franchise Agreement to facilitate the conversion of the franchisee's current business into an Itan Salon. The addendum outlines that any capitalized term not defined within the addendum itself will have the same meaning as defined in the Franchise Agreement. This ensures consistency between the two documents while allowing for specific modifications needed for the conversion process.

Furthermore, the Itan FDD states that the addendum and the Franchise Agreement constitute the entire agreement between the parties. Any prior agreements are void, and subsequent modifications must be in writing and signed by both parties to be binding. In case of any inconsistencies between the Franchise Agreement and the addendum, the terms of the addendum will take precedence. This provides clarity and ensures that both parties are aware of the specific terms governing their relationship, especially in the context of a conversion.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.