Does the Itan manual include policies governing Gross Sales?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
The Manual may include policies governing
the manner in which proceeds from the sale of gift cards are treated for purposes of calculating Gross Sales. The Manual may also provide details on the calculation of Gross Sales relating to membership fees and qualifying purchases and redemptions by members under a customer loyalty or membership program.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the manual may include policies governing how proceeds from gift card sales are treated when calculating Gross Sales. The manual may also provide details on calculating Gross Sales related to membership fees, qualifying purchases, and redemptions by members participating in a customer loyalty or membership program.
For a prospective Itan franchisee, this means the precise method for calculating Gross Sales, which directly impacts royalty payments and other fees, is subject to further clarification within the Itan manual. Franchisees must adhere to these guidelines to ensure accurate reporting and avoid potential disputes with Itan.
It is common for franchise agreements to define Gross Sales and outline inclusions and exclusions. The Itan FDD provides a general definition of Gross Sales, but the manual provides further specifics. Prospective franchisees should carefully review the Itan manual to fully understand how Gross Sales are calculated, especially concerning gift cards and loyalty programs. This will help in accurately forecasting revenue and managing financial obligations to Itan.