What is the maximum fee Itan may charge a franchisee for transferring a customer's account?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ave the right to: (i) determine how membership fees are divided or otherwise accounted for; (ii) require that all membership fees be paid to us or deposited into a trust account we control for subsequent disbursement to the Salons(s) visited by the member; (iii) adopt policies regarding cooperation
between franchisees relating to members who utilize the services of, or enjoy membership privileges at, multiple Salons; and (iv) designate the use of new Technology Systems to monitor sales and allocate payments to the Salon(s) visited by the member, either in whole or on a percentage basis. Under current policy, you may request that we transfer a customer's account to you if the customer obtains more than 60% of his or her service sessions from your Salon over the course of at least three (3) consecutive active months (if the account is transferred to you and the customer also has a TANOLOGY® lotion membership and incurred their first committed billing prior to the date of the account transfer, then the customer's TANOLOGY® lotion membership may also be assigned to you along with the customer's account). We may charge you a fee of up to $5 in connection with any such trans
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, under the current policy, a franchisee may request to have a customer's account transferred to them if the customer receives more than 60% of their service sessions from the franchisee's salon over at least three consecutive active months. If the account is transferred and the customer has a TANOLOGY® lotion membership with billing prior to the transfer date, that membership may also be assigned to the franchisee.
Itan may charge the franchisee a fee of up to $5 in connection with this account transfer. The franchisee may be required to use a specific membership agreement form and hire an attorney licensed in their state to review the agreement and ensure compliance with local laws. Any changes to the agreement must be approved by Itan before implementation.
This policy outlines the conditions under which a franchisee can acquire a customer's account from another Itan location and specifies the maximum fee associated with such a transfer. It also highlights the importance of adhering to Itan's required membership agreement and ensuring legal compliance, which may involve additional costs for legal counsel.