How will Itan communicate changes to the reporting period or royalty fee due date?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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 may periodically change the reporting period and/or royalty fee due date through updates to the Manual. The royalty fee is 6.5% of Gross Sales generated during the immediately preceding reporting period. The current reporting period runs from Monday through Sunday, with the royalty fee due date being the Wednesday immediately following the end of the prior reporting period.
This means that Itan franchisees need to stay informed about updates to the Manual, as these updates will contain any changes to the reporting period for gross sales or the due date for royalty fee payments. Franchisees should regularly check for updates to the manual to ensure they are calculating and submitting their royalty fees correctly and on time. Failure to do so could result in late fees or other penalties.
It is common for franchisors to update their manuals periodically to reflect changes in business practices, legal requirements, or market conditions. Franchisees are typically responsible for staying up-to-date with these changes and adhering to the latest guidelines. The Itan franchise agreement places the onus on the franchisee to remain current with manual updates to avoid any compliance issues related to royalty fee payments.