From whom must certain Technology Systems be purchased or licensed for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
iers and other Persons relating to your Salon. You may not use them for any purpose unrelated to your Salon. We own the email addresses and accounts but allow you to use them during the Term. We have the independent right to view your email accounts and emails at any time.
- (f) Fees and Costs. You are responsible for all fees, costs and expenses associated with acquiring, licensing, utilizing, updating and upgrading Technology Systems. Certain Technology Systems must be purchased or licensed from third-party suppliers. We and/or our affiliate may develop proprietary Technology Systems (or components thereof) that become part of our System. If this occurs, you agree to: (i) pay us (or our affiliate) commercially reasonable licensing, support and maintenance fees; and (ii) upon request, sign our prescribed form of license agreement governing use of proprietary Technology Systems (or components thereof). We may enter into master agreements with licensors of Third-Party Technology and charge you for amounts we pay them based on your use of their Third-Party Technology.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees may be required to purchase or license certain Technology Systems from specific sources. Some Technology Systems must be purchased or licensed from third-party suppliers. Additionally, Itan or its affiliates may develop proprietary Technology Systems, in which case franchisees would be required to pay commercially reasonable licensing, support, and maintenance fees to Itan or its affiliate and sign a license agreement.
Itan may also enter into master agreements with licensors of Third-Party Technology and charge franchisees for the amounts Itan pays them based on the franchisee's use of the Third-Party Technology. The technology fee paid by the franchisee includes amounts paid for proprietary items and amounts Itan collects from franchisees to remit to suppliers of Third-Party Technology. However, the technology fee does not include amounts franchisees pay directly to third-party suppliers.
This means that as an Itan franchisee, you may have to acquire certain technology systems from specific third-party vendors that Itan approves. Furthermore, if Itan develops its own proprietary technology, you'll be obligated to license it from them, incurring additional fees. It is important to note that the technology fee can change based on adjustments to the Technology Systems or the prices charged by third parties with whom Itan has master agreements. Franchisees are responsible for all fees, costs, and expenses associated with acquiring, licensing, utilizing, updating, and upgrading Technology Systems.