During an inspection of my Itan Salon, what are my obligations regarding cooperation?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ks. You must also treat your employees and our staff with honesty and respect.
- 11.15.Quality Assurance Programs. For quality control purposes we may periodically: (a) inspect your Salon in accordance with §6.4 and §16.1; and/or (b) hire mystery shoppers or quality assurance firms to inspect your Salon. Inspections may address a variety of issues, including customer service, safety, sanitation, inventory rotation, etc. You must fully cooperate with all inspections. We may require that you directly pay any mystery shopper or firm we hire for the cost of the inspection. Alternatively, we may pay for the cost of the inspection and require you to reimburse us. We may
implement a scoring system pursuant to which each Salon receives a "grade" or "score" based on the inspection results. Failure to achieve a passing grade or score constitutes a default under this Agreement. You must implement all corrective measures we require within the time period we specify to rectify any noncompliance issues revealed by an inspection.
- 11.16.Failure to Comply with Standards. You acknowledge the importance of every one of our standards and operating procedures to the reputation and integrity of the System and goodwill associated with the Marks. If we notify you of a breach of our standards or operating procedures (including failure to submit required reports in a timely manner) and you fail to cure within the time period we prescribe, we may (in addition to our other remedies under this Agreement) impose a noncompliance fee of $500 per occurrence. We may impose a separate $500 fee every 48 hours the same noncompliance issue remains uncured after we impose the initial fee. Any noncompliance fees we collect are paid in consideration of us refraining from exercising our contractual right to terminate this Agreement.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must fully cooperate with all inspections. Itan conducts inspections for quality control and to ensure compliance with the franchise agreement. These inspections may address various issues, including customer service, safety, sanitation, and inventory rotation.
Itan, or its representatives, may enter and evaluate the salon, inspecting books, records, accounts, and tax returns. The scope of the inspection is determined by Itan and may include evaluating the physical condition of the salon, examining and copying records, inspecting and testing equipment, monitoring and speaking with staff, and contacting the landlord and customers.
Specifically, franchisees and their employees must cooperate and not interfere with the inspection process. Franchisees also consent to Itan accessing their Technology Systems and retrieving any Business Data deemed appropriate. Failure to achieve a passing grade or score based on the inspection results constitutes a default under the Franchise Agreement, and franchisees must implement all corrective measures required by Itan within the specified time period to rectify any noncompliance issues revealed by an inspection.