Besides the management fee, what other expenses must an Itan franchisee reimburse if an Interim Manager is appointed?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
a material breach before the expiration of the cure period. The Interim Manager will cease to manage your Salon at such time that you cure the material breach. The Interim Manager will not manage your Salon for more than 90 consecutive days without your consent. If we appoint an Interim Manager, you agree to: (a) pay us a management fee equal to the greater of $350 per day or 10% of Gross Sales generated during the period of time the Interim Manager manages your Salon; and (b) reimburse all Travel
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if Itan appoints an Interim Manager to manage a salon due to the franchisee's failure to cure a material breach, the franchisee is responsible for specific expenses beyond the management fee. The management fee is the greater of $350 per day or 10% of gross sales during the period the Interim Manager is in place.
In addition to this management fee, the franchisee must reimburse Itan for all Travel Expenses incurred by the Interim Manager. This means the franchisee will have to cover costs such as transportation, lodging, and meals for the Interim Manager during their assignment.
It is important to note that the Interim Manager is only liable to the franchisee for gross negligence or willful misconduct. Similarly, Itan is not liable for the Interim Manager's actions unless Itan was grossly negligent in appointing them. This arrangement places the financial burden and operational risk on the franchisee while limiting the liability of both the Interim Manager and Itan, except in cases of significant negligence or misconduct.