If Itan or its affiliate develops proprietary Technology Systems, what is the Itan franchisee's obligation?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
of your Technology Systems; (ii) the manner in which your Technology Systems integrate and interface with our computer system and those of third parties; and (iii) any consequences resulting from improper use or operation, or failure to properly maintain, update or upgrade, Technology Systems.
- (b) Use and Access. You must use Technology Systems in accordance with the Manual and comply with all associated data entry policies. You may not load or permit any unauthorized programs or games on your Technology Systems. You must ensure your employees are adequately trained in the use of the Technology Systems. You agree to take all steps necessary to provide us with independent and unlimited access to data collected by or through your Technology Systems, including Gross Sales data for purposes of calculating fees owed. Upon request, including upon termination or expiration of this Agreement, you must provide us with user IDs and passwords for your Technology Systems.
- (c) Disruptions. You are solely responsible for protecting against computer viruses, bugs, power disruptions, communication line disruptions, internet access failures, internet content failures, date-related problems and attacks by unauthorized Persons. Upon request, you must obtain and maintain cyber insurance and business interruption insurance for technology disruptions.
- (d) Third-Party Technology. You understand and agree that we and our affiliates: (i) do not own certain Technology Systems (or components thereof) that you must use to operate your Salon (i.e., Third-Party Technology); and (ii) have no liability to you for any losses, damages or expenses you incur as result of Third-Party Technology not functioning properly.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must use the Technology Systems in accordance with the brand standards manual and comply with all associated data entry policies. Franchisees are prohibited from loading unauthorized programs or games on the Technology Systems and must ensure their employees are adequately trained in using the systems.
Itan franchisees must provide the franchisor with independent and unlimited access to data collected through the Technology Systems, including gross sales data for calculating fees owed. Upon request, including termination or expiration of the franchise agreement, franchisees must provide user IDs and passwords for their Technology Systems. Franchisees are responsible for protecting against computer viruses, power disruptions, communication line disruptions, internet access failures, and attacks by unauthorized persons.
Itan may require franchisees to obtain and maintain cyber insurance and business interruption insurance for technology disruptions. Itan will provide franchisees with iTAN email addresses and accounts that must be exclusively used for all communications related to the Salon. Itan may charge a fee for each email address provided, which is added to the technology fee. These email addresses and accounts are owned by Itan, but franchisees are allowed to use them during the term of the agreement.