What is the Itan franchisee's sole recourse if Third-Party Technology malfunctions?

According to Itan's 2025 Franchise Disclosure Document, if Third-Party Technology malfunctions, the franchisee's sole recourse is against the owner or licensor of that technology. Itan explicitly states that neither they nor their affiliates have any liability for losses, damages, or expenses incurred due to improperly functioning Third-Party Technology.

This means that if a critical piece of technology, such as a point-of-sale system provided by a third party, fails and causes the franchisee to lose revenue or incur expenses, the franchisee cannot seek compensation from Itan. Instead, the franchisee must pursue a claim against the company that owns or licenses the malfunctioning technology. This could involve navigating complex legal agreements and dealing with a company that may not be responsive or easy to work with.

This arrangement places a significant risk on the Itan franchisee, as they are dependent on technology systems to operate their salon but have limited control over the reliability and functionality of those systems. It is important for prospective franchisees to carefully evaluate the technology systems required by Itan, understand the terms and conditions of any third-party agreements, and assess the potential financial impact of technology malfunctions. Franchisees may also want to consider obtaining insurance to protect against losses resulting from technology disruptions, as mentioned elsewhere in the FDD.