Is an Itan franchisee allowed to infringe upon the intellectual property rights of others in their advertisements?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
"Intellectual Property" means, collectively or individually, the Business Data, Copyrighted Materials, Improvements, Know-how, Marks and System.
"Marks" means and includes all service marks, trademarks, trade names and logos that we designate from time to time and authorize Salons to use, including iTAN®, iTAN SUN SPRAY SPA® and the associated logos.
"System" means our system developed for the operation of a Salon, the distinctive characteristics of which include: distinctive interior and exterior design, décor, signage, color scheme and other trade dress elements; proprietary retail products and equipment; high quality tanning services, technology and
techniques; comprehensive training programs; advertising and marketing strategies; merchandising strategies; and operating system.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
Based on the 2025 FDD, Itan franchisees are expected to protect Itan's intellectual property. The FDD defines "Intellectual Property" as including Business Data, Copyrighted Materials, Improvements, Know-how, Marks and System. The "Marks" include all service marks, trademarks, trade names and logos that Itan designates and authorizes Salons to use, including iTAN® and iTAN SUN SPRAY SPA®. The "System" includes advertising and marketing strategies.
The FDD excerpts provided do not explicitly state that franchisees are prohibited from infringing on the intellectual property rights of others in their advertisements. However, the agreement states that the franchisee must protect Itan's intellectual property. It is reasonable to infer that franchisees should not use advertising that infringes on another's intellectual property, as this could create legal issues for both the franchisee and franchisor.
To fully understand the scope of restrictions on advertising and intellectual property, a prospective Itan franchisee should ask the franchisor for specific examples of prohibited advertising content and whether Itan provides legal review of franchisee advertising materials.