What is the maximum number of consecutive days that an Itan Interim Manager can manage a Salon without the franchisee's consent?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
must also post a conspicuous notice for employees in the back-of-house area explaining your franchise relationship with us and that you (and not we) are the employee's sole employer. We may prescribe the form and content of this notice.
- 8.4. Interim Manager. We may, but need not, designate a Person (an "Interim Manager") to manage your Salon if you fail to cure 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 a franchisee fails to correct a material breach within the given cure period, Itan has the option to appoint an Interim Manager to oversee the salon. This Interim Manager can manage the salon for up to 90 consecutive days without the franchisee's consent.
During the period that the Interim Manager is in place, the franchisee is responsible for paying Itan a management fee. This fee is calculated as the greater of $350 per day or 10% of the salon's gross sales during the Interim Manager's tenure. Additionally, the franchisee must reimburse Itan for all travel expenses incurred by the Interim Manager.
It's important to note that the Interim Manager's liability to the franchisee is limited to instances of gross negligence or willful misconduct. Similarly, Itan's liability to the franchisee for the Interim Manager's actions is limited to situations where Itan was grossly negligent in appointing the manager. This arrangement highlights the importance of franchisees addressing any breaches promptly to avoid intervention by Itan and the associated costs and potential liabilities.