How often can Itan adjust fees based on the U.S. Consumer Price Index (CPI)?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- CPI Adjustments: All fees expressed as a fixed dollar amount are subject to adjustment based on changes to the U.S. Consumer Price Index (CPI). We may periodically review and increase these fees based on changes to CPI, but only if the increase to CPI is more than 5% higher than the corresponding CPI in effect on: (a) the effective date of the Franchise Agreement (for the initial fee adjustment); or (b) the date we implemented the last fee adjustment (for subsequent fee adjustments). We will notify you of any CPI adjustment at least 60 days before the fee adjustment becomes effective. We may implement no more than 1 fee adjustment during any 5-year period.
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan can adjust fixed dollar amount fees based on changes to the U.S. Consumer Price Index (CPI). However, Itan can only make these adjustments if the CPI increase is more than 5% higher than the CPI in effect either on the date of the Franchise Agreement or the date of the last fee adjustment.
Itan is limited to implementing only one fee adjustment during any five-year period. This means that even if the CPI increases significantly within a shorter timeframe, Itan will not be able to adjust the fees again until the five-year period has elapsed.
Itan must also provide franchisees with at least 60 days' notice before any CPI-related fee adjustment takes effect. This advance notice allows franchisees time to prepare for the change and adjust their financial planning accordingly. This policy helps to ensure transparency and avoid unexpected financial burdens on franchisees.