For Itan franchises, what index does Itan currently use for CPI adjustments?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ill be payable upon demand, together with any late fee imposed pursuant to §13.4. We may also impose a $100 NSF fee for each instance where either: (a) there are insufficient funds in your Account to cover amounts owed when due; or (b) a check you issue to us is returned due to insufficient funds.
- 13.6. CPI Adjustments. 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. City Average (1982-84 = 100), "All Items". We will notify you of any CPI adjustment at least 60 days before it becomes effective. We may implement no more than one (1) fee adjustment during any five (5) year period.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may periodically adjust fees based on changes to the U.S. Consumer Price Index (CPI). Specifically, Itan states that it 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 following index: All Urban Wage Earners and Clerical Workers (CPI-W), U.S. City Average (1982-84 = 100), "All Items".
For a prospective Itan franchisee, this means that certain fees, including minimum fees expressed as a fixed dollar amount, could increase over time due to inflation. However, Itan can only increase these fees if the then-current CPI is more than 5% higher than the baseline CPI, which is either the CPI in effect on the Effective Date of the Franchise Agreement for the initial fee adjustment, or the date Itan implemented the last fee adjustment for subsequent adjustments.
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 will notify franchisees of any CPI adjustment at least 60 days before it becomes effective. Furthermore, Itan may implement no more than one fee adjustment during any five-year period.
Itan may also adjust the cap on periodic remodeling expenses at the same time and in the same manner as it adjusts fees. This provides Itan with the flexibility to account for inflation when calculating fees, while also giving franchisees advance notice and limiting the frequency of adjustments.