Are Itan franchisees required to follow Itan's policies and procedures regarding the 'membership' model?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You must fully participate in any gift card, loyalty or membership program we implement in accordance with our policies and procedures. In order to participate, you may be required to purchase additional equipment, software and/or Apps and pay fees relating to the use of that equipment, software and/or Apps. We have the right to determine how membership fees and proceeds from gift card sales are divided or otherwise accounted for and we may retain proceeds from unredeemed gift cards. We may require that all Salons operate under a membership model, in which case your Salon must honor memberships and the associated benefits and privileges even if the member purchased their membership from another Salon. We may establish policies and procedures for the transfer of membership accounts between Salons.
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 any membership program that Itan implements. This includes complying with all policies and procedures Itan establishes for the program. Franchisees may be required to purchase or license necessary equipment, software, mobile applications, technology, and other items, and pay all associated fees and costs. Itan has the right to determine how membership fees and proceeds from gift card sales are divided or otherwise accounted for, and may retain proceeds from unredeemed gift cards.
Itan may require that all salons operate under a membership model. If this is the case, franchisees must honor memberships and the associated benefits and privileges, even if the member purchased their membership from another Itan salon. Itan may also establish policies and procedures for the transfer of membership accounts between salons.
These stipulations mean that prospective Itan franchisees must be prepared to invest in and adhere to Itan's specific requirements for the membership program. This includes potential costs for equipment, software, and fees, as well as compliance with Itan's policies regarding membership fee allocation and the honoring of memberships across different franchise locations. Franchisees should inquire about the specific costs and obligations associated with the membership program to fully understand their financial and operational responsibilities.