What management fee does Itan charge if an Interim Manager is appointed?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
a material breach before the expiration of the cure period. The Interim Manager will cease to manage your Salon at such time that you cure the material breach. The Interim Manager will not manage your Salon for more than 90 consecutive days without your consent. If we appoint an Interim Manager, you agree to: (a) pay us a management fee equal to the greater of $350 per day or 10% of Gross Sales generated during the period of time the Interim Manager manages your Salon; and (b) reimburse all Travel
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if Itan appoints an Interim Manager to manage a salon due to the franchisee's failure to cure a material breach, the franchisee must pay Itan a management fee. This fee is the greater of $350 per day or 10% of the Gross Sales generated during the period the Interim Manager is managing the salon.
In addition to the management fee, the franchisee is also responsible for reimbursing all Travel Expenses incurred by the Interim Manager. The Interim Manager will only manage the salon until the franchisee cures the material breach, and this period will not exceed 90 consecutive days without the franchisee's consent.
It's important to note that the Interim Manager has no liability to the franchisee except for gross negligence or willful misconduct, and Itan has no liability to the franchisee for the Interim Manager's actions unless Itan was grossly negligent in appointing the Interim Manager. This arrangement is designed to ensure the continued operation of the Itan salon while addressing the franchisee's breach of the agreement.