For Itan franchises, how will Itan notify franchisees of CPI adjustments?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan will notify franchisees of any CPI adjustment at least 60 days before the adjustment becomes effective. This notification period allows franchisees time to prepare for any changes in fees that may result from the adjustment.
The CPI index that Itan currently uses is the All Urban Wage Earners and Clerical Workers (CPI-W), U.S. City Average (1982-84 = 100), "All Items". However, Itan retains the right to utilize any CPI index series published by the U.S. Department of Labor or any comparable Governmental Authority that it deems appropriate.
Itan may implement a fee adjustment no more than once during any five-year period. If Itan chooses not to increase fees during a five-year period despite a 5% or greater CPI increase, the potential fee increase accumulates and may be carried forward to a subsequent fee adjustment. This means that Itan could implement a larger fee increase in the future to account for past CPI increases that were not previously applied. Itan may also adjust the cap on periodic remodeling expenses at the same time and in the same manner as it adjusts fees.