How much advance notice will Itan provide before a CPI-based fee adjustment becomes effective?

According to Itan's 2025 Franchise Disclosure Document, Itan will provide franchisees with at least 60 days' notice before any fee adjustments based on changes to the U.S. Consumer Price Index (CPI) become effective. This advance notice allows franchisees time to prepare for the adjustment.

Itan may periodically review and increase fees based on CPI changes, but only if the CPI increase is more than 5% higher than the CPI in effect either on the Franchise Agreement's effective date (for the initial adjustment) or the date of the last fee adjustment (for subsequent adjustments). This condition protects franchisees from frequent or minor fee adjustments due to small fluctuations in the CPI.

Itan is limited to implementing no more than one fee adjustment during any five-year period. This restriction provides franchisees with a degree of predictability and stability regarding their fee structure, preventing Itan from making frequent adjustments that could impact profitability. This is a fairly standard practice in franchising, as franchisors typically balance the need to adjust for economic changes with the franchisees' need for stable and predictable costs.