When is the noncompliance fee due to Itan?
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, the noncompliance fee of $500 is due upon demand. This fee is imposed if a franchisee breaches a mandatory standard or operating procedure, including the submission of required reports, and fails to correct the breach within the time period required by Itan.
Furthermore, Itan may impose an additional $500 fee every 48 hours if the breach remains uncorrected 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 if issues are not resolved promptly.
Many franchise agreements include noncompliance fees to ensure brand standards and operational procedures are followed. The specific amount and terms can vary, so prospective Itan franchisees should carefully review the standards and procedures outlined in the franchise agreement to understand what could trigger this fee and how to avoid it.