Is an Itan franchisee required to participate in any gift card, loyalty, or membership program that Itan implements?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You must fully participate in any gift card, loyalty or membership program we implement in accordance with our policies and procedures. In order to participate, you may be required to purchase additional equipment, software and/or Apps and pay fees relating to the use of that equipment, software and/or Apps. We have the right to determine how membership fees and proceeds from gift card sales are divided or otherwise accounted for and we may retain proceeds from unredeemed gift cards. We may require that all Salons operate under a membership model, in which case your Salon must honor memberships and the associated benefits and privileges even if the member purchased their membership from another Salon. We may establish policies and procedures for the transfer of membership accounts between Salons.
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, franchisees must participate fully in any gift card, loyalty, or membership programs that Itan implements. This participation may require franchisees to purchase additional equipment, software, or apps and pay associated fees.
Itan retains the right to determine how membership fees and proceeds from gift card sales are divided or accounted for. Itan may also retain proceeds from unredeemed gift cards. This means that while franchisees are required to participate, the financial benefits and control over these programs are largely managed by Itan.
Itan may require all salons to operate under a membership model, in which case a franchisee's salon must honor memberships and associated benefits, even if the membership was purchased at another Itan location. Itan may also establish policies and procedures for transferring membership accounts between salons. This ensures consistency across the Itan franchise system but also means franchisees must be prepared to honor obligations to customers who may not have initially patronized their specific location.