Under what conditions might Itan offer an Area Development Agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
If you satisfy our criteria for multi-unit developers, we may (but need not) offer you the right to sign the form of Area Development Agreement attached to this Disclosure Document as EXHIBIT "D" (the "ADA"). The ADA grants you the right and obligation to develop, open and operate multiple Salons within a defined "development territory" according to a predetermined "development schedule". You must commit to develop, open and operate a minimum of 3 Salons in order to sign an ADA. You must develop, open and operate all of the Salons identified in the development schedule. You must sign a separate franchise agreement for each Salon you develop. Each franchise agreement will be our then-current form of franchise agreement, which may be different than the form of Franchise Agreement attached to this Disclosure Document.
Source: Item 1 — FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–9)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may offer an Area Development Agreement (ADA) to prospective franchisees who meet their criteria for multi-unit developers. However, Itan is not obligated to offer an ADA even if a franchisee meets the criteria.
The ADA grants the franchisee the right and obligation to develop, open, and operate multiple Itan salons within a defined development territory, following a predetermined development schedule. A key requirement is a commitment to develop, open, and operate a minimum of three salons to qualify for an ADA.
The franchisee must adhere to the development schedule and sign a separate franchise agreement for each salon they develop. It's important to note that each franchise agreement will be Itan's then-current form, which may differ from the franchise agreement included in the Franchise Disclosure Document. This means the terms and conditions could change for each new salon opened under the Area Development Agreement.