For Itan franchises, what is the 'Current CPI' used for in the context of CPI adjustments?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We may periodically adjust all fees (including minimum fees) expressed as a fixed dollar amount based on changes to the U.S.
Consumer Price Index (CPI).
We may periodically review and increase these fees based on CPI changes, but only if the then-current CPI ("Current CPI") is more than 5% higher than the corresponding CPI in effect on: (a) the Effective Date of this Agreement (for the initial fee adjustment); or (b) the date we implemented the last fee adjustment (for subsequent fee adjustments) ("Baseline CPI").
The adjusted fee is calculated by multiplying the current fee by the sum of one (1) plus a fraction: (a) the numerator of which is Current CPI minus Baseline CPI; and (b) the denominator of which is Baseline CPI.
We may utilize any CPI index series published by the U.S.
Department of Labor or any comparable Governmental Authority that we deem appropriate.
We currently use the following index: All Urban Wage Earners and Clerical Workers (CPI-W), U.S.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the 'Current CPI' is used to determine if Itan will adjust certain fees. Specifically, Itan may periodically adjust all fees (including minimum fees) expressed as a fixed dollar amount based on changes to the U.S. Consumer Price Index (CPI).
Itan may review and increase these fees based on CPI changes, but only if the then-current CPI is more than 5% higher than the corresponding CPI in effect on either the effective date of the agreement for the initial fee adjustment, or the date Itan implemented the last fee adjustment for subsequent fee adjustments, which is referred to as the 'Baseline CPI'.
The adjusted fee is calculated by multiplying the current fee by the sum of one (1) plus a fraction. The numerator of this fraction is the Current CPI minus the Baseline CPI, and the denominator is the Baseline CPI. Itan uses the All Urban Wage Earners and Clerical Workers (CPI-W), U.S. City Average (1982-84 = 100), "All Items" index, but may utilize any CPI index series published by the U.S. Department of Labor or any comparable Governmental Authority that Itan deems appropriate.