If Itan requires participation in a system-wide program, must the franchisee pay all associated fees and costs?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You must fully participate in all programs we designate as mandatory. In order to participate you must: (i) comply with all policies and procedures we establish for the program; (ii) purchase or license and utilize all equipment, software, mobile applications, technology and others items we designate as being necessary for program participation and pay all associated fees and costs; and (iii) pay us, our affiliate, or a third party we designate, all program fees, contributions or other amounts we require for program participation (collectively, "Program Participation Rules"). Program Participation Rules may be set forth in the Manual. We may change Program Participation Rules at any time and you must comply with the change. We may develop and implement new or successor programs and/or modify or terminate existing programs at any time.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if Itan designates participation in system-wide programs as mandatory, franchisees must fully participate. This includes adhering to all established policies and procedures.
To participate in these mandatory programs, the franchisee is required to purchase or license and utilize all necessary equipment, software, mobile applications, technology, and other designated items. Furthermore, the franchisee is responsible for paying all associated fees and costs related to these items. Additionally, franchisees must pay Itan, its affiliates, or a designated third party all required program fees, contributions, or other amounts for program participation. These requirements are collectively referred to as "Program Participation Rules."
Itan retains the right to modify these Program Participation Rules at any time, and franchisees are obligated to comply with any changes. Itan also has the discretion to develop and implement new or successor programs, as well as modify or terminate existing programs, at any time. This means that franchisees must remain adaptable and prepared to invest further in new systems or adjust their operations as directed by Itan.