If Itan develops proprietary Technology Systems, what fees must a franchisee pay?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- (f) Fees and Costs. You are responsible for all fees, costs and expenses associated with acquiring, licensing, utilizing, updating and upgrading Technology Systems. Certain Technology Systems must be purchased or licensed from third-party suppliers. We and/or our affiliate may develop proprietary Technology Systems (or components thereof) that become part of our System. If this occurs, you agree to: (i) pay us (or our affiliate) commercially reasonable licensing, support and maintenance fees; and (ii) upon request, sign our prescribed form of license agreement governing use of proprietary Technology Systems (or components thereof). We may enter into master agreements with licensors of Third-Party Technology and charge you for amounts we pay them based on your use of their Third-Party Technology. The technology fee includes all amounts you pay us and our affiliates relating to Technology Systems, including amounts paid for proprietary items and amounts we collect from you and remit to suppliers of Third-Party Technology. The technology fee may change based on changes to Technology Systems or prices charged by third parties with whom we enter into master agreements.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if Itan or its affiliates develop proprietary Technology Systems, franchisees must pay commercially reasonable licensing, support, and maintenance fees to Itan or its affiliate. Franchisees may also be required to sign Itan's prescribed form of license agreement governing the use of these proprietary Technology Systems.
Itan may enter into master agreements with licensors of Third-Party Technology and charge franchisees for the amounts Itan pays them based on the franchisee's use of the Third-Party Technology. The technology fee includes all amounts franchisees pay to Itan and its affiliates relating to Technology Systems, including amounts paid for proprietary items and amounts Itan collects from franchisees and remits to suppliers of Third-Party Technology.
The technology fee may change based on changes to Technology Systems or prices charged by third parties with whom Itan enters into master agreements. This fee may also include a reasonable administrative fee for the time, money, and resources Itan invests to administer the technology platform and associated components, negotiate and manage contracts with third-party licensors, and collect and remit technology fees owed to third-party licensors on behalf of franchisees under master license arrangements. The technology fee is due 10 days after invoicing or as Itan specifies in their manual.