What is the noncompliance fee charged by Itan for breaching a mandatory standard?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE 1 | AMOUNT 2, 3 | DUE DATE | REMARKS |
|---|---|---|---|
| Noncompliance fee | $500 per incident | Upon demand | Imposed if you breach a mandatory standard or operating procedure (including submission of required reports) and fail to cure within the time period we require. We may impose an additional $500 fee every 48 hours the breach remains uncured after we impose the initial fee. We will deposit these fees into the brand fund. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee may incur a noncompliance fee of $500 per incident if they breach a mandatory standard or operating procedure, including failing to submit required reports, and do not correct the breach within the time period Itan requires.
Furthermore, Itan may impose an additional $500 fee every 48 hours if the breach remains uncured after the initial fee is imposed. These fees will be deposited into the brand fund. This means that noncompliance can quickly become expensive for an Itan franchisee, with ongoing breaches potentially costing a significant amount in additional fees.
It is important for prospective Itan franchisees to understand and adhere to all mandatory standards and operating procedures outlined in the franchise agreement and related manuals to avoid these noncompliance fees. Paying close attention to required reports and deadlines is also crucial. Franchisees should clarify with Itan the specific standards and procedures that trigger this fee and the exact cure periods allowed to rectify any breaches.