Against whom does an Itan franchisee have recourse for issues with Third-Party Technology?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Third-Party Technology.
You understand and agree that we and our affiliates: (i) do not own certain Technology Systems (or components thereof) that you must use to operate your Salon (i.e., Third-Party Technology); and (ii) have no liability to you for any losses, damages or expenses you incur as result of Third-Party Technology not functioning properly.
Accordingly, you hereby: (i) waive any and all Claims against us or our affiliates relating to Third-Party Technology; and (ii) acknowledge your sole recourse for any liabilities, losses, damages or expenses you incur due to improperly functioning Third-Party Technology shall be against the owner or licensor of such Third-Party Technology.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an Itan franchisee's sole recourse for issues with Third-Party Technology lies against the owner or licensor of that technology, not against Itan or its affiliates. Third-Party Technology refers to Technology Systems or their components not owned by Itan or its affiliates, but which franchisees must use to operate their salons. This includes hardware, software, and related services.
This arrangement means that if a point-of-sale system or other required technology malfunctions, the franchisee must seek resolution directly from the third-party vendor. Itan explicitly disclaims any liability for losses, damages, or expenses resulting from the improper functioning of Third-Party Technology. The franchisee also waives any claims against Itan or its affiliates related to these technologies.
Itan may enter into master agreements with licensors of Third-Party Technology and charge franchisees for the use of this technology. The technology fee paid to Itan includes amounts for proprietary items and amounts Itan remits to suppliers of Third-Party Technology. However, this fee does not cover amounts franchisees pay directly to third-party suppliers. Franchisees are also responsible for all fees, costs, and expenses associated with acquiring, licensing, utilizing, updating, and upgrading Technology Systems.
Prospective Itan franchisees should carefully evaluate the reliability and support terms of any required Third-Party Technology. It is important to understand the specific recourse options available from those vendors, as Itan will not be responsible for any malfunctions or issues. Franchisees should also consider obtaining cyber insurance and business interruption insurance for technology disruptions.