What two conditions must an Itan franchisee meet to have the option to develop Optional Salons?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2. Optional Salons. If (a) you develop and open all Required Salons prior to the expiration of the Term of this Agreement and (b) you and your affiliates have substantially complied with the Development Schedule and all Definitive Agreements, then you shall have the option, but not the obligation, to develop one (1) or more additional Salons within the Development Territory during the remainder of the Term (each, an "Optional Salon").
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an Itan franchisee has the option to develop additional salons, referred to as "Optional Salons", if they meet two specific conditions. First, the franchisee must develop and open all of their "Required Salons" before the expiration of the agreement's term. The "Term" refers to the period from the agreement's effective date until the opening date of the last required salon, as outlined in the Development Schedule.
Second, the franchisee and their affiliates must have substantially complied with both the Development Schedule and all Definitive Agreements. The Development Schedule outlines the timeline for opening the Required Salons, and Definitive Agreements likely refer to the various contracts and obligations a franchisee enters into with Itan.
In essence, to be eligible for developing Optional Salons, an Itan franchisee must fulfill their initial development obligations on time and remain in good standing with Itan regarding their contractual commitments. This provides an incentive for franchisees to adhere to the agreed-upon development plan and maintain a positive relationship with the franchisor.