What is the Itan franchisee's recourse if Third-Party Technology malfunctions?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan franchisees have limited recourse against Itan or its affiliates for issues arising from Third-Party Technology. The FDD defines "Third-Party Technology" as Technology Systems (or components) not owned by Itan or its affiliates.
The document explicitly states that Itan and its affiliates bear no liability for any losses, damages, or expenses a franchisee incurs due to Third-Party Technology malfunctioning. Instead, the franchisee's sole recourse for any liabilities, losses, damages, or expenses resulting from improperly functioning Third-Party Technology is against the owner or licensor of that technology.
This means that if a point-of-sale system provided by a third-party vendor malfunctions, causing the Itan franchisee to lose sales data or incur downtime, the franchisee must pursue claims directly against the vendor, not Itan. The franchisee also waives any claims against Itan or its affiliates relating to Third-Party Technology. This arrangement places the responsibility for the performance of Third-Party Technology squarely on the franchisee, who must then seek remedies from the technology provider.