If an Itan customer's account is transferred, what happens to their TANOLOGY® lotion membership?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ation
between franchisees relating to members who utilize the services of, or enjoy membership privileges at, multiple Salons; and (iv) designate the use of new Technology Systems to monitor sales and allocate payments to the Salon(s) visited by the member, either in whole or on a percentage basis. Under current policy, you may request that we transfer a customer's account to you if the customer obtains more than 60% of his or her service sessions from your Salon over the course of at least three (3) consecutive active months (if the account is transferred to you and the customer also has a TANOLOGY® lotion membership and incurred their first committed billing prior to the date of the account transfer, then the customer's TANOLOGY® lotion membership may also be assigned to you along with the customer's account). We may charge you a fee of up to $5 in connection with any such trans
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a customer's account is transferred to a franchisee and the customer has a TANOLOGY® lotion membership with their first billing prior to the account transfer date, the lotion membership may also be assigned to the franchisee along with the customer's account.
This means that if a franchisee gains a customer through an account transfer, they may also gain the revenue associated with that customer's lotion membership. This is contingent on the customer having started their lotion membership before the account transfer.
Itan may charge a fee of up to $5 in connection with the account transfer. The franchisee may be required to use a specific membership agreement form and hire an attorney to review the agreement for local law compliance, with any changes subject to Itan's approval.