Under what conditions may Itan terminate the Franchise Agreement if a site is not secured?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not select the site for your Salon and we do not purchase the premises and lease it to you. You must identify and obtain our approval of the site for your Salon within 90 days after signing the Franchise Agreement. We may terminate your Franchise Agreement if you fail to meet this deadline or if we cannot agree on a site.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may terminate the Franchise Agreement if a franchisee fails to identify and secure an approved site within a specified timeframe. Specifically, the franchisee must identify and obtain Itan's approval of a site for their Salon within 90 days after signing the Franchise Agreement.
Itan retains the right to terminate the Franchise Agreement if the franchisee fails to meet the 90-day deadline for site approval or if Itan and the franchisee cannot come to an agreement on a suitable site. This condition underscores the importance of proactive site selection and communication with Itan during the initial stages of the franchise process.
This stipulation protects Itan by ensuring that franchisees promptly establish their businesses and adhere to the brand's site selection criteria. For prospective franchisees, it highlights the need to conduct thorough market research and site evaluations before signing the Franchise Agreement to minimize the risk of termination due to site-related issues.