What is the deadline for an Itan franchisee to notify Itan of a Gross Sales miscalculation to be entitled to a refund or credit?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Gross Sales Reports. No later than each royalty fee due date, you must prepare and send us a statement of your Gross Sales for the prior reporting period. If you miscalculate Gross Sales, you must notify us of the error no later than the end of the next Gross Sales reporting period. Otherwise, you will not be entitled to any refund or credit of any fees paid to us based on previously reported Gross Sales.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if an Itan franchisee miscalculates Gross Sales, they must notify Itan of the error no later than the end of the next Gross Sales reporting period to be entitled to a refund or credit of any fees paid based on the previously reported Gross Sales. The current reporting period for Gross Sales runs from the opening of business on Monday through the close of business on Sunday. The royalty fee due date is the Wednesday immediately following the end of the prior reporting period.
This means that if a franchisee discovers a Gross Sales miscalculation, they have a limited time to correct it and claim a refund or credit. Missing the deadline results in forfeiting the right to any adjustment.
It is important for prospective Itan franchisees to understand the Gross Sales reporting requirements and deadlines to avoid potential financial losses due to miscalculations. Franchisees should implement careful record-keeping practices and regularly review their Gross Sales reports to ensure accuracy and compliance with Itan's policies.