For Itan franchises, what must a franchisee do to enable Itan to debit their account?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
On each royalty fee due date, you must pay us a brand fund fee equal to 2% of Gross Sales for the prior reporting period.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
Based on the 2025 Itan Franchise Disclosure Document, there is no information provided that details the specific steps a franchisee must take to authorize Itan to debit their account. The document does mention that on each royalty fee due date, franchisees must pay a brand fund fee equal to 2% of Gross Sales for the prior reporting period. However, it does not specify the mechanism by which these payments are to be made.
While the FDD outlines various financial obligations, such as the brand fund fee, it omits the procedural details on how Itan collects these payments. This leaves a gap in understanding the payment methods and authorization processes required from the franchisee.
Prospective Itan franchisees should seek clarification from the franchisor regarding the accepted payment methods for fees and any necessary steps to set up direct debit or electronic fund transfers. Understanding these procedures is crucial for managing financial transactions and ensuring compliance with the franchise agreement.