Is Itan bound by the suggestions made by the advisory council?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but need not, create a franchise advisory council to provide us with suggestions to improve the System,
including matters such as marketing, operations and new product or service suggestions. We would consider all suggestions in good faith, but would not be bound by them. The council would be established and operated according to rules and regulations we periodically approve, including procedures governing the selection of council representatives to communicate with us on matters raised by the council. You would have the right to be a member of the council as long as you comply with your Franchise Agreement and do not act in a disruptive, abusive or counter-productive manner, as determined by us in our discretion. As a member, you would be entitled to all voting rights and privileges granted to other members of the council. Any company-owned Salon would also be a member of the council. Each member would be granted 1 vote on all matters on which members are authorized to vote. We have the power to form, change or dissolve the advisory council in our discretion.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may choose to create a franchise advisory council. The purpose of this council would be to provide suggestions to improve the Itan system, including advice on marketing, operations, and new products or services. However, Itan is not required to implement any of the council's suggestions. While Itan would consider all suggestions in good faith, it is not legally bound by them.
As a prospective Itan franchisee, you have the right to be a member of this advisory council, provided you comply with the Franchise Agreement and do not engage in disruptive, abusive, or counter-productive behavior as determined by Itan. As a member, you would have voting rights and privileges equal to those of other members. Each member, including any company-owned salons, is granted one vote on all matters the members are authorized to vote on.
It is important to note that Itan retains the power to form, change, or dissolve the advisory council at its discretion. This means that the existence and influence of the council are ultimately controlled by Itan, and the company is not obligated to follow its recommendations.