For Itan, what must an employee or independent contractor do with any Improvement they develop?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **17.5.
Improvements**.
If you (or your Owner or employee) conceive of or develop an Improvement, you must send us a notice describing the Improvement.
You must obtain our approval prior to using the Improvement.
Any Improvement we approve may be used by us and any Person we authorize to operate a Salon, without any obligation to pay royalties or other fees to you or any other Person.
You or your Owner or employee, as applicable, must assign ownership of the Improvement to us or our designee, without charge, together with all associated intellectual property rights, including the right to grant sublicenses.
If applicable Law precludes you from assigning ownership to us, then you must grant us a perpetual royalty-free license to use, commercialize and sublicense the Improvement in any manner we deem appropriate.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if an employee or independent contractor develops an Improvement, they must first send Itan a notice describing the Improvement. Before the Improvement can be used, Itan's approval is required.
If Itan approves the Improvement, Itan and anyone they authorize to operate a Salon can use it without paying royalties or other fees to the franchisee or any other person. The employee or independent contractor must assign ownership of the Improvement to Itan or their designee without any charge. This assignment includes all associated intellectual property rights, including the right to grant sublicenses.
However, if applicable law prevents the assignment of ownership to Itan, the employee or independent contractor must grant Itan a perpetual, royalty-free license to use, commercialize, and sublicense the Improvement in any manner Itan deems appropriate. This ensures that Itan retains the rights to benefit from any Improvement developed within the franchise system, even if direct ownership transfer is not possible.