If Itan changes the Intellectual Property, is Itan liable for any loss of goodwill associated with a Mark?

According to Itan's 2025 Franchise Disclosure Document, Itan has the right to change its Intellectual Property at any time, which includes alterations to Copyrighted Materials, Know-how, Marks, and the System. The Intellectual Property includes all service marks, trademarks, trade names and logos that Itan designates from time to time and authorizes Salons to use, including iTAN®, iTAN SUN SPRAY SPA® and the associated logos. The Marks also include any distinctive trade dress used to identify a Salon or the products it sells.

As an Itan franchisee, you are obligated to implement all Intellectual Property changes that Itan requires, and you must do so at your own expense. This means you will bear the financial burden of updating your salon to reflect any changes Itan makes to its branding, operational methods, or other proprietary elements.

Importantly, the FDD explicitly states that Itan is not liable for any losses or expenses you incur as a result of these changes, including any loss of goodwill associated with a Mark. Goodwill refers to the reputation and customer loyalty associated with a brand, so if Itan changes its Marks and your salon experiences a decline in business due to customer confusion or dissatisfaction, Itan is not responsible for compensating you. This is a significant risk for franchisees, as they must invest in implementing changes without any guarantee of maintaining their current level of business or customer loyalty.