Besides the Local Marketing Commitment, are all fees payable directly to Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Nature and Manner of Payment: All fees are imposed by and payable to us except you spend the Local Marketing Commitment directly with third-party suppliers. All fees are nonrefundable and uniformly imposed other than the royalty fee "ramp up" for Qualifying Conversion Salons. You sign an ACH Authorization Form (attached to the Franchise Agreement as ATTACHMENT "E") permitting us to electronically debit your designated bank account for all amounts owed to us and our affiliates (other than fees due less than 15 days after signing the Franchise Agreement). You must deposit all Gross Sales into the bank account and ensure sufficient funds are available for withdrawal before each due date. You are responsible for all taxes imposed on you or us based on products, intangible property (including trademarks) or services we provide to you.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, all fees are payable to Itan, except for the Local Marketing Commitment, which franchisees spend directly with third-party suppliers. This means that franchisees will primarily make payments directly to Itan, simplifying the payment process for most fees.
Itan requires franchisees to sign an ACH Authorization Form, allowing Itan to electronically debit the franchisee's designated bank account for all amounts owed to Itan and its affiliates. This excludes fees due less than 15 days after signing the Franchise Agreement. Franchisees must deposit all Gross Sales into the bank account and ensure sufficient funds are available for withdrawal before each due date. Gross Sales includes all gross sums billed or collected from goods and services, advertising revenue, sponsorship fees, and business interruption insurance proceeds, but excludes sales or use taxes, amounts refunded to customers, revenue from the sale of furniture, fixtures, and equipment, and tips retained by staff.
Franchisees are responsible for all taxes imposed on them or Itan based on products, intangible property (including trademarks), or services Itan provides. This arrangement ensures Itan can efficiently collect the majority of fees owed, while franchisees retain control over their local marketing expenditures. Prospective franchisees should be aware of the ACH requirement and ensure they maintain sufficient funds in their designated bank account to cover these fees.