Can Itan change the reporting period or royalty fee due date?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.2. Royalty Fee. On the day of each week we specify (the "royalty fee due date") you must pay us a royalty fee equal to 6.5% of Gross Sales generated during the immediately preceding reporting period. The current reporting period runs from the opening of business on Monday through the close of business on Sunday. The current royalty fee due date is the Wednesday immediately following the end of the prior reporting period. We may periodically change the reporting period and/or royalty fee due date through updates to the Manual.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan has the right to modify the reporting period and/or the royalty fee due date. The current reporting period for Gross Sales runs from Monday to Sunday, with the royalty fee due the following Wednesday.
This means that Itan franchisees must remain aware of any potential changes to these periods and due dates, as these changes could impact their cash flow management and accounting practices. It is common for franchisors to retain the right to make such changes, as business needs and systems evolve over time.
It is important for prospective franchisees to understand that Itan can make these changes through updates to the Manual, which franchisees are expected to follow. Franchisees should regularly review updates to the Manual to stay informed of any modifications to the reporting period or royalty fee due date.