Can Itan develop and implement new programs or terminate existing programs at any time?
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.
- (b) Membership Program. We may require that all Salons operate under a membership model, in which case your Salon must honor memberships and the associated benefits and privileges even if the member purchased their membership from another Salon. We have the right to: (i) determine how membership fees are divided or otherwise accounted for; (ii) require that all membership fees be paid to us or deposited into a trust account we control for subsequent disbursement to the Salons(s) visited by the member; (iii) adopt policies regarding cooperation
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 develop and implement new programs, as well as modify or terminate existing ones, at any time. These programs can include membership, loyalty, gift card, and other system-wide initiatives.
As an Itan franchisee, you are required to fully participate in any programs that Itan designates as mandatory. This participation involves complying with all policies and procedures established for the program, purchasing or licensing necessary equipment, software, and technology, and paying all associated fees and costs. These requirements are outlined in what Itan terms "Program Participation Rules," which may be detailed in the Itan manual.
It is important to note that Itan can change these Program Participation Rules at any time, and franchisees must comply with these changes. This means that franchisees need to be prepared for potential adjustments to program requirements and associated costs. Furthermore, Itan may require all salons to operate under a membership model, which would necessitate honoring memberships and benefits even if the member purchased their membership from another salon. Itan also retains the right to determine how membership fees are divided or managed, potentially requiring fees to be paid to Itan or deposited into a trust account controlled by them.