What claims are Itan franchisees waiving against Itan relating to Third-Party Technology?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) Third-Party Technology.
You understand and agree that we and our affiliates: (i) do not own certain Technology Systems (or components thereof) that you must use to operate your Salon (i.e., Third-Party Technology); and (ii) have no liability to you for any losses, damages or expenses you incur as result of Third-Party Technology not functioning properly.
Accordingly, you hereby: (i) waive any and all Claims against us or our affiliates relating to Third-Party Technology; and (ii) acknowledge your sole recourse for any liabilities, losses, damages or expenses you incur due to improperly functioning Third-Party Technology shall be against the owner or licensor of such 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 waive any claims against Itan or its affiliates regarding Third-Party Technology. This waiver covers any losses, damages, or expenses incurred due to Third-Party Technology not functioning correctly.
In practical terms, this means that if a franchisee experiences issues with technology systems not owned by Itan, such as point-of-sale systems or security systems provided by third-party vendors, they cannot hold Itan liable for any resulting damages. The franchisee's sole recourse for such issues is against the owner or licensor of the Third-Party Technology.
This arrangement places the responsibility on the franchisee to seek remedies directly from the third-party provider. It also highlights the importance of carefully reviewing the terms and conditions of any third-party technology agreements and ensuring adequate protection against potential technology failures. Franchisees should consider obtaining cyber insurance and business interruption insurance to mitigate risks associated with technology disruptions, as suggested in the FDD.
It is common in franchising for franchisors to utilize third-party vendors for various services and technologies. This clause clarifies the allocation of liability between Itan, its franchisees, and these third-party providers, emphasizing that Itan is not responsible for the performance of technology it does not own or control.