Can Itan change the Program Participation Rules for system-wide programs at any time, and are franchisees obligated to comply?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Generally. We may periodically develop and implement membership, loyalty, gift card and other system-wide programs. You must fully participate in all programs we designate as mandatory. In order to participate you must: (i) comply with all policies and procedures we establish for the program; (ii) purchase or license and utilize all equipment, software, mobile applications, technology and others items we designate as being necessary for program participation and pay all associated fees and costs; and (iii) pay us, our affiliate, or a third party we designate, all program fees, contributions or other amounts we require for program participation (collectively, "Program Participation Rules"). Program Participation Rules may be set forth in the Manual. We may change Program Participation Rules at any time and you must comply with the change. We may develop and implement new or successor programs and/or modify or terminate existing programs at any time.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan has the authority to modify the Program Participation Rules at any time, and franchisees are obligated to comply with these changes. These rules pertain to system-wide programs like membership, loyalty, and gift card initiatives.
To participate in these programs, franchisees must adhere to Itan's established policies and procedures, acquire necessary equipment, software, and technology, and remit all required program fees. These Program Participation Rules may be detailed in Itan's Manual.
Itan can introduce new programs, modify existing ones, or terminate programs at its discretion. This means that franchisees must remain adaptable and prepared to implement changes to their business operations as directed by Itan to maintain compliance with the franchise agreement.