For Itan franchises, can the cap on periodic remodeling expenses be adjusted, and if so, how?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
nt no more than one (1) fee adjustment during any five (5) year period. If we decline to exercise our right to increase fees in a given five (5) year period despite a 5% or greater CPI increase, that potential fee increase will accumulate and may be carried forward and applied in connection with a subsequent fee adjustment. We may also adjust the cap on periodic remodeling expenses in §11.10 at the same time, and in the same manner, as we adjust fees in accordance with this Section.
14. BRAND PROTECTION COVENANTS.
- 14.1. Reason for Covenants. The Intellectual Property, training and assistance we provide would not be acquired except through implementation of this Agreement. You agree that competition by you, the Owners or Persons associated with you or the Owners (including family members) could seriously jeopardize our franchise system because you and the Owners receive an advantage through knowledge of our day-to-day operations and Know-how.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the cap on periodic remodeling expenses can be adjusted. The FDD states that Itan may adjust the $25,000 cap on remodeling expenses periodically. These adjustments will be made at the same time and in the same manner as fee adjustments.
Itan may utilize any CPI index series published by the U.S. Department of Labor or any comparable Governmental Authority that it deems appropriate. Currently, Itan uses the All Urban Wage Earners and Clerical Workers (CPI-W), U.S. City Average (1982-84 = 100), "All Items" index.
Itan will notify franchisees of any CPI adjustment at least 60 days before it becomes effective. Itan may implement no more than one fee adjustment during any five-year period. If Itan declines to exercise its right to increase fees in a given five-year period despite a 5% or greater CPI increase, that potential fee increase will accumulate and may be carried forward and applied in connection with a subsequent fee adjustment.