factual

As a member of the Itan advisory council, am I entitled to voting rights and privileges?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

We may, but need not, create a franchise advisory council to provide us with suggestions to improve the System,

including matters such as marketing, operations and new product or service suggestions. We would consider all suggestions in good faith, but would not be bound by them. The council would be established and operated according to rules and regulations we periodically approve, including procedures governing the selection of council representatives to communicate with us on matters raised by the council. You would have the right to be a member of the council as long as you comply with your Franchise Agreement and do not act in a disruptive, abusive or counter-productive manner, as determined by us in our discretion. As a member, you would be entitled to all voting rights and privileges granted to other members of the council. Any company-owned Salon would also be a member of the council. Each member would be granted 1 vote on all matters on which members are authorized to vote. We have the power to form, change or dissolve the advisory council in our discretion.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, the franchisor may, but is not required to, create a franchise advisory council. If a council is created, it serves to provide suggestions to improve the Itan system.

As a franchisee, you have the right to be a member of the council as long as you comply with the Franchise Agreement and do not act in a disruptive, abusive, or counter-productive manner. As a member, you are entitled to all voting rights and privileges granted to other members of the council. Any company-owned salon would also be a member of the council. Each member is granted one vote on all matters on which members are authorized to vote.

It is important to note that Itan retains the power to form, change, or dissolve the advisory council at their discretion. This means that while you may have voting rights and privileges as a member, the council's existence and structure are ultimately controlled by Itan.

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.