What is the Itan franchisee's obligation if an employee breaches a Brand Protection Agreement or Confidentiality Agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5. Employees. All employees, officers, directors, independent contractors and other Persons associated with you or your Salon must sign and send us a Confidentiality Agreement before accessing our Confidential Information.
Any Person who signs a Brand Protection Agreement need not sign a Confidentiality Agreement.
You must: (a) use best efforts to ensure these individuals comply with the Brand Protection Agreements and Confidentiality Agreements, as applicable; (b) immediately notify us of any breach that comes to your attention; and (c) reimburse all expenses we incur to enforce a Brand Protection Agreement or Confidentiality Agreement, including attorneys' fees and court costs.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding their employees' compliance with Brand Protection Agreements and Confidentiality Agreements. Itan requires that all employees, officers, directors, independent contractors, and other individuals associated with the franchisee's salon must sign and submit a Confidentiality Agreement before they are allowed to access Itan's confidential information. However, if a person signs a Brand Protection Agreement, they do not need to sign a Confidentiality Agreement.
Itan franchisees must use their best efforts to ensure that these individuals comply with both the Brand Protection Agreements and Confidentiality Agreements, as applicable. Franchisees are also obligated to immediately notify Itan of any breaches of these agreements that come to their attention.
Furthermore, the Itan franchisee is responsible for reimbursing all expenses that Itan incurs to enforce a Brand Protection Agreement or Confidentiality Agreement. These expenses include attorneys' fees and court costs. This means that if an employee violates either agreement, the franchisee could be financially liable for Itan's legal costs associated with enforcing the agreement.