When is an Itan employee or independent contractor prohibited from engaging in Prohibited Activities?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **2.
BACKGROUND**.
You are an employee or independent contractor of Franchisee.
As a result of this association, you may gain knowledge of our System and Know-how.
You understand that protecting the Intellectual Property is vital to our success and that of our franchisees and that you could seriously jeopardize our franchise system if you were to misuse our Intellectual Property.
To avoid such damage, you agree to comply with the terms of this Agreement.
- **3.
INTELLECTUAL PROPERTY & CONFIDENTIAL INFORMATION**.
You agree to: (a) refrain from using the Intellectual Property or Confidential Information in any business or for any purpose other than the operation of Franchisee's Salon; (b) maintain the confidentiality of Confidential Information at all times; (c) refrain from making unauthorized copies of documents containing Confidential Information; (d) take all steps we reasonably require to prevent unauthorized use or disclosure of Confidential Information; and (e) immediately stop using the Intellectual Property and Confidential Information at such time that you are no longer an employee or independent contractor of Franchisee.
You agree to assign to us or our designee, without charge, all rights to any Improvement developed by you, including the right to grant sublicenses.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an employee or independent contractor is subject to certain restrictions to protect the brand's intellectual property and competitive interests. As an employee or independent contractor of an Itan franchisee, individuals may gain knowledge of the Itan system and know-how. Itan emphasizes that protecting its intellectual property is vital to the success of the franchise and its franchisees.
To mitigate potential damage from unfair competition or misuse of intellectual property, employees and independent contractors must comply with the terms outlined in their agreement. These terms include refraining from using Itan's intellectual property or confidential information in any business or for any purpose other than the operation of the franchisee's salon. They must also maintain the confidentiality of confidential information at all times and avoid making unauthorized copies of documents containing such information.
Furthermore, employees and independent contractors are required to take all steps reasonably required by Itan to prevent unauthorized use or disclosure of confidential information. Upon termination of their employment or contract, they must immediately cease using Itan's intellectual property and confidential information. This comprehensive approach ensures that Itan's proprietary information remains protected, and the franchise system's competitive advantage is maintained.