Are Itan franchisees required to follow Itan's policies and procedures regarding customer loyalty programs?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Loyalty Program.
You must fully participate and implement all required customer loyalty, rewards and other affinity programs designed to increase customer loyalty, generate new customers or improve overall demand for Salons.
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 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 36)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must fully participate in all customer loyalty, rewards, and other affinity programs that Itan designs to increase customer loyalty, generate new customers, or improve overall demand for Itan salons. This means franchisees are not only required to implement these programs but also to adhere to Itan's specific guidelines and strategies for their execution.
Itan may also periodically develop and implement membership, loyalty, gift card and other system-wide programs. Franchisees must fully participate in all programs Itan designates as mandatory. To participate, franchisees must comply with all policies and procedures Itan establishes for the program. They must also purchase or license and utilize all equipment, software, mobile applications, technology and others items Itan designates as being necessary for program participation and pay all associated fees and costs. Franchisees must pay Itan, its affiliate, or a third party Itan designates, all program fees, contributions or other amounts Itan requires for program participation.
These Program Participation Rules may be set forth in the Manual, and Itan may change Program Participation Rules at any time, requiring franchisees to comply with the change. Itan retains the right to develop and implement new or successor programs and/or modify or terminate existing programs at any time. This ensures that Itan can adapt its loyalty programs to changing market conditions and customer preferences, while maintaining a consistent brand experience across all franchise locations.
For a prospective franchisee, this requirement means they must be prepared to invest in the necessary resources and training to effectively implement and manage Itan's loyalty programs. It also means staying informed about any changes to the program rules and adapting their operations accordingly. While this ensures consistency and brand integrity, it also reduces the franchisee's autonomy in designing and implementing their own loyalty initiatives.