factual

What is the maximum number of fee adjustments Itan may implement during any 5-year period?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

We may implement no more than 1 fee adjustment during any 5-year period.

Source: Item 6 — OTHER FEES (FDD pages 11–15)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, Itan may implement no more than one fee adjustment during any five-year period. This adjustment is tied to changes in the U.S. Consumer Price Index (CPI).

Itan can only adjust fees if the CPI increase is more than 5% higher than the CPI in effect either on the effective date of the Franchise Agreement for the initial adjustment, or on the date of the last fee adjustment for subsequent adjustments. This means that Itan cannot arbitrarily increase fees; the increase must be justified by a significant rise in the CPI.

Itan is required to notify franchisees at least 60 days before any CPI-related fee adjustment takes effect. This advance notice allows franchisees time to prepare for the change. This policy provides some predictability and limits the frequency with which Itan can increase fees, protecting franchisees from potentially rapid or frequent cost increases. Many franchise agreements include similar clauses tying fee adjustments to inflation or other economic indicators, but the specific terms can vary significantly.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.