Does Itan have a franchise advisory council, and where can I find more information about it in the FDD?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but need not, create a franchise advisory council to provide us with suggestions to improve the System,
including matters such as marketing, operations and new product or service suggestions. We would consider all suggestions in good faith, but would not be bound by them. The council would be established and operated according to rules and regulations we periodically approve, including procedures governing the selection of council representatives to communicate with us on matters raised by the council. You would have the right to be a member of the council as long as you comply with your Franchise Agreement and do not act in a disruptive, abusive or counter-productive manner, as determined by us in our discretion. As a member, you would be entitled to all voting rights and privileges granted to other members of the council. Any company-owned Salon would also be a member of the council. Each member would be granted 1 vote on all matters on which members are authorized to vote. We have the power to form, change or dissolve the advisory council in our discretion.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may, but does not have to, create a franchise advisory council. The purpose of this council would be to provide suggestions to improve the Itan system, covering areas like marketing, operations, and new product or service ideas. While Itan would consider these suggestions in good faith, they are not obligated to follow them.
The advisory council would operate under rules and regulations approved by Itan, including procedures for selecting representatives to communicate with Itan on council matters. Franchisees in good standing would have the right to be a member of the council, with full voting rights, provided they comply with the Franchise Agreement and do not act disruptively. Company-owned salons would also be members, each with one vote.
Itan retains the power to form, change, or dissolve the advisory council at their discretion. Further details regarding the advisory council can be found in Section 12 of the Franchise Disclosure Document. This discretionary aspect means that franchisees cannot rely on having a formal channel for input, which is a risk to consider. Franchise advisory councils are common in franchising, but the specific structure and influence can vary significantly between franchise systems.