If I develop an Improvement related to Itan, do I receive compensation for assigning the rights to Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **17.5.
Improvements**.
If you (or your Owner or employee) conceive of or develop an Improvement, you must send us a notice describing the Improvement.
You must obtain our approval prior to using the Improvement.
Any Improvement we approve may be used by us and any Person we authorize to operate a Salon, without any obligation to pay royalties or other fees to you or any other Person.
You or your Owner or employee, as applicable, must assign ownership of the Improvement to us or our designee, without charge, together with all associated intellectual property rights, including the right to grant sublicenses.
If applicable Law precludes you from assigning ownership to us, then you must grant us a perpetual royalty-free license to use, commercialize and sublicense the Improvement in any manner we deem appropriate.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a franchisee or their employee develops an Improvement related to the Itan salon, they must notify Itan and obtain approval before using it. An "Improvement" is defined as any idea, addition, modification or improvement to the goods or services offered, method of operation, processes, marketing, or intellectual property utilized by a Salon.
Upon approval, Itan and any person they authorize to operate a salon can use the Improvement without paying royalties or fees to the franchisee or any other person. The franchisee (or their employee) must assign ownership of the Improvement to Itan or their designee without any charge. This assignment includes all associated intellectual property rights, including the right to grant sublicenses.
If applicable law prevents the franchisee from assigning ownership, they must grant Itan a perpetual, royalty-free license to use, commercialize, and sublicense the Improvement in any manner Itan deems appropriate. Therefore, a franchisee will not receive compensation for assigning rights to improvements to Itan.