What is Itan's liability regarding Third-Party Technology?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You understand and agree that we and our affiliates: (i) do not own certain Technology Systems (or components thereof) that you must use to operate your Salon (i.e., Third-Party Technology); and (ii) have no liability to you for any losses, damages or expenses you incur as result of Third-Party Technology not functioning properly.
Accordingly, you hereby: (i) waive any and all Claims against us or our affiliates relating to Third-Party Technology; and (ii) acknowledge your sole recourse for any liabilities, losses, damages or expenses you incur due to improperly functioning Third-Party Technology shall be against the owner or licensor of such Third-Party Technology.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan has no liability to franchisees for any losses, damages, or expenses incurred as a result of Third-Party Technology not functioning properly. Third-Party Technology refers to Technology Systems (or components of them) that are owned by entities not affiliated with Itan.
As an Itan franchisee, you agree to waive any claims against Itan or its affiliates relating to Third-Party Technology. Your only recourse for any liabilities, losses, damages, or expenses due to improperly functioning Third-Party Technology is against the owner or licensor of that technology.
This means that if a point-of-sale system provided by a third-party vendor malfunctions and causes you to lose sales data or incur other damages, you cannot hold Itan responsible. Instead, you would need to pursue a claim against the vendor that owns or licenses the software. This arrangement is not uncommon in franchising, as franchisors often utilize third-party technologies but do not control their functionality or support.