What obligations does an Itan franchisee have regarding the use of the franchisor's customer relationship management (CRM) system (Item 11) in relation to the collection and analysis of customer data (Item 9)?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
The point-of-sale system will generally be used to record and report sales, track employee hours and performance information, track commissions, host a customer information database and perform certain marketing functions. It will also interface with the tanning beds to ensure that the sales are recorded and to verify customer identification information based on fingerprint records (i.e., to ensure a customer who purchased a membership does not send another person to receive the service).
We provide you iTAN email addresses and accounts, the cost of which is covered by the technology fee. You must exclusively use the email addresses we provide for all communications with us, customers, suppliers and other persons relating to your Salon. You may not use them for any purpose unrelated to your Salon. We will own the email addresses and accounts but allow you to use them during the term of your Franchise Agreement.
Collection and Sharing of Data
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are required to use specific technology systems for various aspects of their business operations, including customer data management. The point-of-sale (POS) system is central to this, as it records sales, tracks employee information, and hosts a customer information database. This system also interfaces with the tanning beds to verify customer identification using fingerprint records, ensuring that only authorized members receive services.
Itan franchisees must use Itan-provided email addresses for all communications related to the salon, including interactions with customers and suppliers. This ensures that all communications are within the Itan system and can be monitored if necessary. The franchisor owns these email addresses and accounts, granting the franchisee the right to use them only during the term of the Franchise Agreement. This stipulation allows Itan to maintain control over brand communications and customer interactions.
Furthermore, all data pertaining to the franchisee's salon, customers, and business operations is considered "Business Data," and is classified as Confidential Information. This means franchisees have an obligation to protect this data and adhere to confidentiality agreements. The POS system and other technology systems are essential for collecting and managing this data, and franchisees must ensure they are used in compliance with Itan's standards and data protection policies. This includes maintaining the security and privacy of customer information and adhering to the franchisor's guidelines for data usage and reporting.