What is the Itan franchisee's obligation regarding the use of Technology Systems?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
of your Technology Systems; (ii) the manner in which your Technology Systems integrate and interface with our computer system and those of third parties; and (iii) any consequences resulting from improper use or operation, or failure to properly maintain, update or upgrade, Technology Systems.
(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.
(d) Third-Party Technology. You understand and agree that we and our affiliates: (i) do not own certain Technology Systems (or components thereof) that you must use to operate your Salon (i.e., Third-Party Technology); and (ii) have no liability to you for any losses, damages or expenses you incur as result of Third-Party Technology not functioning properly. Accordingly, you hereby: (i) waive any and all Claims against us or our affiliates relating to Third-Party Technology; and (ii) acknowledge your sole recourse for any liabilities, losses, damages or expenses you incur due to improperly functioning Third-Party Technology shall be against the owner or licensor of such Third-Party Technology.
(e) Email Accounts. We will provide you with the iTAN email addresses and accounts you must use. We may charge you our then-current fee for each email address we provide (this fee is added to the technology fee described in §11.9(f) below). You must exclusively use these email addresses for all communications with us, customers, suppliers and other Persons relating to your Salon. You may not use them for any purpose unrelated to your Salon. We own the email addresses and accounts but allow you to use them during the Term. We have the independent right to view your email accounts and emails at any time.
(f) Fees and Costs. You are responsible for all fees, costs and expenses associated with acquiring, licensing, utilizing, updating and upgrading Technology Systems. Certain Technology Systems must be purchased or licensed from third-party suppliers. We and/or our affiliate may develop proprietary Technology Systems (or components thereof) that become part of our System. If this occurs, you agree to: (i) pay us (or our affiliate) commercially reasonable licensing, support and maintenance fees; and (ii) upon request, sign our prescribed form of license agreement governing use of proprietary Technology Systems (or components thereof). We may enter into master agreements with licensors of Third-Party Technology and charge you for amounts we pay them based on your use of their Third-Party Technology.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must use the Technology Systems as specified in the brand standards manual and adhere to all data entry policies. Franchisees are prohibited from loading unauthorized programs or games onto the Technology Systems and must ensure their employees are properly trained in using these systems.
Itan franchisees must provide the franchisor with independent and unlimited access to the data collected through the Technology Systems, including gross sales data, which is used to calculate owed fees. Upon request, including termination or expiration of the Franchise Agreement, franchisees must provide user IDs and passwords for their Technology Systems. Franchisees are responsible for protecting against computer viruses, power disruptions, communication line disruptions, internet access failures, date-related problems, and unauthorized access. Itan may also require franchisees to obtain and maintain cyber insurance and business interruption insurance for technology disruptions.
The franchisee is responsible for all fees, costs, and expenses associated with acquiring, licensing, utilizing, updating, and upgrading the Technology Systems. Some Technology Systems may need to be purchased or licensed from third-party suppliers. Itan may develop proprietary Technology Systems, and if this occurs, franchisees must pay commercially reasonable licensing, support, and maintenance fees and sign a license agreement. Itan may also enter into master agreements with licensors of Third-Party Technology and charge franchisees for their use of this technology. The technology fee, which is listed in the Manual, includes amounts paid for proprietary items and amounts Itan collects and remits to suppliers of Third-Party Technology but does not include amounts franchisees pay directly to third-party suppliers.
Itan will provide franchisees with iTAN email addresses and accounts that must be exclusively used for all communications with Itan, customers, suppliers, and other persons related to the Salon. Franchisees cannot use these email addresses for purposes unrelated to their Salon. Itan retains ownership of the email addresses and accounts but allows franchisees to use them during the Term of the Franchise Agreement and has the independent right to view the email accounts and emails at any time.