Is an Itan franchisee allowed to load unauthorized games onto the Technology Systems?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Use and Access.
You must use Technology Systems in accordance with the Manual and comply with all associated data entry policies.
You may not load or permit any unauthorized programs or games on your Technology Systems.
You must ensure your employees are adequately trained in the use of the Technology Systems.
You agree to take all steps necessary to provide us with independent and unlimited access to data collected by or through your Technology Systems, including Gross Sales data for purposes of calculating fees owed.
Upon request, including upon termination or expiration of this Agreement, you must provide us with user IDs and passwords for your Technology Systems.
- (c) Disruptions.
You are solely responsible for protecting against computer viruses, bugs, power disruptions, communication line disruptions, internet access failures, internet content failures, date-related problems and attacks by unauthorized Persons.
Upon request, you must obtain and maintain cyber insurance and business interruption insurance for technology disruptions.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from loading unauthorized programs or games onto the Technology Systems. The Technology Systems, as defined in the FDD, include all information and communication technology systems that Itan specifies, such as computer systems, point-of-sale systems, webcam systems, telecommunications systems, security systems, and music systems, along with their associated hardware and software. This restriction ensures the integrity and security of Itan's technology infrastructure across all franchise locations.
This policy has several implications for prospective Itan franchisees. It ensures that all locations operate on a standardized and secure technology platform, reducing the risk of system vulnerabilities and data breaches. By preventing the installation of unauthorized software, Itan aims to maintain consistency and reliability across its network. This also helps in providing uniform customer experience and efficient management of the business.
For a potential franchisee, this means adhering strictly to the technology guidelines set by Itan. It is crucial to understand and comply with these regulations to avoid any breach of the franchise agreement. Franchisees should ensure that their employees are also aware of this restriction and are adequately trained in the use of the approved Technology Systems. Any deviation from this policy could lead to penalties or even termination of the franchise agreement.
It is also important for franchisees to understand their responsibilities regarding technology disruptions. They are solely responsible for protecting against computer viruses, bugs, power disruptions, and other technological issues. While Itan provides the Technology Systems, the franchisee is accountable for maintaining their operational integrity and security. This may also include obtaining and maintaining cyber insurance and business interruption insurance for technology disruptions, as requested by Itan.