According to the Itan franchise agreement, who owns the Intellectual Property?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
oss Sales. The Manual may also provide details on the calculation of Gross Sales relating to membership fees and qualifying purchases and redemptions by members under a loyalty or membership program.
- "Improvement" means any idea, addition, modification or improvement to the (a) goods or services offered or sold at a Salon, (b) method of operation of a Salon, (c) processes, systems or procedures utilized by a Salon, (d) marketing, advertising or promotional materials, programs or strategies utilized by a Salon or (e) trademarks, service marks, logos or other intellectual property utilized by a Salon, whether developed by you, your Owners, your employees or any other Person.
- "Indemnified Parties" means and includes us and each of our past, present and future owners, members, officers, directors, employees and agents, as well as our parents, subsidiaries and affiliates, and each of their past, present and future owners, members, officers, directors, employees and agents.
- "Intellectual Property" means, collectively or individually, the Business Data, Copyrighted Materials, Improvements, Know-how, Marks and System.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to the 2025 Itan Franchise Disclosure Document, the Intellectual Property is owned by Itan. The FDD defines Intellectual Property as the Business Data, Copyrighted Materials, Improvements, Know-how, Marks and System. The agreement specifies that any improvements made by an employee or independent contractor of the franchisee must be assigned to Itan, including the right to grant sublicenses.
It is important to note that Itan has a licensing agreement with a related party that owns the trademarks, service marks, and other marks related to the Itan name and franchise. This agreement allows Itan to use and sublicense the Marks to its franchise locations, with a one-time payment of $10 from Itan to the related party.
For a prospective franchisee, this means that while you will be authorized to use Itan's Intellectual Property to operate your salon, you will not own any of it. Any improvements or modifications you develop related to the Itan system become the property of Itan. This is a common arrangement in franchising, as it allows the franchisor to maintain consistency and control over the brand and system-wide.