Are employees of an Itan Salon considered employees of the franchisor?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not control the day-today activities of your employees or the manner in which they perform their assigned tasks.
You must inform your employees that you exclusively supervise their activities and dictate the manner in which they perform their assigned tasks.
In this regard, you must use your legal business Entity name (not our Marks or a fictitious name) on employee applications, paystubs, pay checks, employment agreements and similar documents.
We do not control the hiring or firing of your employees.
You have sole authority and responsibility for all employment-related decisions, including hiring, promotion, hours worked, rates of pay, benefits, work assignments, training and working conditions.
We do not provide guidance or advice on these matters.
You must ensure each employee signs the acknowledgment form we prescribe that explains the nature of the franchise relationship and notifies the employee that you are his or her sole employer.
You must also post a conspicuous notice for employees in the back-of-house area explaining your franchise relationship with us and that you (and not we) are the employee's sole employer.
We may prescribe the form and content of this notice.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, employees of an Itan salon are not considered employees of the franchisor, Itan Franchising, Inc. The FDD clearly states that Itan does not control the day-to-day activities of the franchisee's employees or how they perform their tasks. The franchisee is solely responsible for supervising their employees and dictating how they perform their work.
Itan franchisees must use their legal business entity name, not Itan's marks or a fictitious name, on all employee-related documents, including applications, paystubs, paychecks, and employment agreements. Itan does not control the hiring or firing of employees and offers no guidance or advice on employment-related decisions. The franchisee has the sole authority and responsibility for all employment-related decisions, including hiring, promotion, hours worked, rates of pay, benefits, work assignments, training, and working conditions.
To ensure clarity, Itan requires franchisees to have each employee sign an acknowledgment form explaining the franchise relationship and confirming that the franchisee is their sole employer. Franchisees must also post a conspicuous notice in the back-of-house area explaining the franchise relationship and stating that the franchisee, not Itan, is the employee's sole employer. Itan may prescribe the form and content of this notice.