If Itan changes the trademarks, who bears the expense of changing to the new trademark?

According to Itan's 2025 Franchise Disclosure Document, if Itan changes the trademarks that franchisees are permitted to use, the franchisee must bear the expense of changing to the new trademark. The FDD estimates these expenses could range from $10,000 to $20,000. This means that if Itan decides to rebrand or discontinue the use of a particular mark, franchisees will be responsible for covering the costs associated with updating signage, marketing materials, and other branded items to reflect the new trademark.

This is a potentially significant expense that prospective Itan franchisees should consider. It is important to budget for this possibility and understand the potential impact on profitability. While the FDD provides an estimated range for these costs, the actual expenses could vary depending on the specific changes required and the size of the franchise location.

It is also important to note that Itan does not have a federal registration for all of its marks. If Itan's right to use any of these marks is challenged, the franchisee may have to change to an alternative trademark, which may increase expenses. This highlights the importance of trademark protection and the potential risks associated with using unregistered marks. Prospective franchisees should inquire about the strength and protection of Itan's trademarks during their due diligence process.