Must Itan franchisees implement all customer loyalty programs designed by the franchisor?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
11.11.System Programs.
- (a) Generally. We may periodically develop and implement membership, loyalty, gift card and other system-wide programs. You must fully participate in all programs we designate as mandatory. In order to participate you must: (i) comply with all policies and procedures we establish for the program; (ii) purchase or license and utilize all equipment, software, mobile applications, technology and others items we designate as being necessary for program participation and pay all associated fees and costs; and (iii) pay us, our affiliate, or a third party we designate, all program fees, contributions or other amounts we require for program participation (collectively, "Program Participation Rules"). Program Participation Rules may be set forth in the Manual. We may change Program Participation Rules at any time and you must comply with the change. We may develop and implement new or successor programs and/or modify or terminate existing programs at any time.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must participate in system-wide programs that Itan designates as mandatory. These programs may include membership, loyalty, gift card, and other similar initiatives.
To participate in these mandatory programs, franchisees must adhere to all established policies and procedures. They are also required to purchase or license and utilize any equipment, software, mobile applications, technology, and other items that Itan deems necessary for participation. Franchisees are responsible for all associated fees and costs related to these items. Additionally, franchisees must pay Itan, its affiliates, or a designated third party all required program fees, contributions, or other amounts for program participation, as outlined in the "Program Participation Rules."
The Program Participation Rules may be detailed in Itan's Manual, and Itan retains the right to change these rules at any time, with which franchisees must comply. Itan also has the flexibility to develop and implement new or successor programs, as well as modify or terminate existing programs, at any time. This ensures that Itan can adapt its system-wide programs to changing market conditions and consumer preferences, while requiring franchisees to stay aligned with these changes.