factual

What must an Itan franchisee do with customer information upon termination?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

Upon request, including upon termination or expiration of this Agreement, you must provide us with user IDs and passwords for your Technology Systems.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–39)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, upon request, including upon termination or expiration of the Franchise Agreement, the franchisee must provide Itan with user IDs and passwords for their Technology Systems. The Technology Systems that Itan franchisees must use includes all information and communication technology systems that Itan specifies from time to time, including, without limitation, computer systems, point-of-sale systems, webcam systems, telecommunications systems, security systems, music systems and similar systems, together with the associated hardware, software (including cloud-based software) and related equipment, software applications, mobile apps, and third-party services relating to the establishment, use, maintenance, monitoring, security or improvement of these systems.

Itan franchisees must use Technology Systems in accordance with the manual and comply with all associated data entry policies. Franchisees must ensure their employees are adequately trained in the use of the Technology Systems. The franchisee also agrees to take all steps necessary to provide Itan with independent and unlimited access to data collected by or through their Technology Systems, including Gross Sales data for purposes of calculating fees owed.

This means that when an Itan franchise agreement ends, the franchisee is obligated to hand over access to all systems that contain customer data. This ensures that Itan retains control over customer information and can continue marketing efforts or maintain customer relationships even after a franchise location closes. A prospective franchisee should consider the implications of relinquishing control over this data, especially if they plan to operate another similar business in the future. It is also important to understand what Itan will do with the customer data after the franchise agreement is terminated.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.