Who bears the expense of implementing Intellectual Property changes required by Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 17.2. Intellectual Property Changes. We may change the Intellectual Property at any time in our sole discretion, including by changing the Copyrighted Materials, Know-how, Marks and/or System. You must, at your expense, implement all Intellectual Property changes we require in accordance with our instructions. We are not liable for any Losses or Expenses you incur (including loss of goodwill associated with a Mark) due to a change to the Intellectual Property.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses incurred when implementing changes to Itan's Intellectual Property. Itan retains the right to modify its Intellectual Property, including Copyrighted Materials, Know-how, Marks, and the System, at its discretion.
This means that if Itan decides to update its brand standards, service marks, trademarks, or operational systems, the franchisee must implement these changes at their own cost. These costs could include updating signage, marketing materials, interior décor, or equipment to comply with the new standards set by Itan.
Itan is not liable for any losses or expenses the franchisee incurs due to these changes, including any loss of goodwill associated with a Mark. This places the financial burden of maintaining brand consistency and adapting to Itan's evolving Intellectual Property on the franchisee, which is a common practice in franchising. Franchisees should factor in these potential costs when assessing the financial viability of the franchise.