How much notice does Itan provide before terminating the electronic funds processing service?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
sing Customer Payments and Account Transfers. We currently provide electronic funds processing services on your behalf with respect to each customer who has signed a membership or other service agreement with you that authorizes electronic debiting of the customer's account for amounts owed to you. You agree to pay us a monthly EFT processing fee of $10 per month for this service. We will credit your Account fo
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may terminate the electronic funds processing (EFT) service provided to franchisees with 60 days' prior notice. As an Itan franchisee, this means that Itan can discontinue the EFT service, which processes customer payments, by providing you with written notice two months in advance.
This policy has implications for how you manage customer payments and your relationship with Itan. The $10 monthly fee for EFT processing is also noteworthy. If Itan terminates the EFT service, you will need to find an alternative method for processing electronic payments, which could involve additional costs and administrative burden. It is important to factor this potential disruption into your business planning and financial projections.
It is fairly common for franchisors to reserve the right to modify or terminate services with advance notice. The 60-day notice period provides some time for franchisees to adjust, but it's crucial to have contingency plans in place to ensure uninterrupted service to customers. Prospective franchisees should inquire about the typical reasons for terminating the EFT service and whether Itan provides assistance in transitioning to a new payment processing system.