Can Itan develop, modify, or terminate system-wide 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, modify, or terminate system-wide programs at any time. These programs can include membership, loyalty, and gift card programs. As a franchisee, you are obligated to fully participate in any programs that Itan designates as mandatory.
To participate in these programs, you must adhere to all policies and procedures established by Itan, purchase or license necessary equipment, software, mobile applications, and technology, and pay all associated fees and costs. Additionally, you must pay Itan, its affiliates, or a designated third party any required program fees, contributions, or other amounts. These requirements are referred to as "Program Participation Rules," which may be detailed in the Itan brand standards manual.
Itan retains the right to change these Program Participation Rules at any time, and franchisees are required to comply with any such changes. This includes the implementation of new or successor programs, as well as modifications or terminations of existing programs. For example, Itan may require all salons to operate under a membership model, where your salon must honor memberships and associated benefits even if the membership was purchased at another location. Itan also has the right to determine how membership fees are divided or managed, potentially requiring all fees to be paid to Itan or deposited into a trust account controlled by Itan for disbursement to salons.