How often can Itan impose an additional noncompliance fee if a breach remains uncured?
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, Itan can impose an additional noncompliance fee of $500 every 48 hours if a breach of a mandatory standard or operating procedure remains uncured after the initial fee is imposed. This includes breaches related to the submission of required reports.
This means that if an Itan franchisee fails to correct a breach within the timeframe specified by Itan, they will incur an initial $500 noncompliance fee. If the issue persists, an additional $500 fee will be charged every 48 hours until the breach is resolved. These fees will be deposited into the brand fund.
Franchisees should be aware of the potential for accumulating significant noncompliance fees if they fail to promptly address any operational or reporting issues identified by Itan. It is crucial to understand and adhere to all mandatory standards and operating procedures outlined in the franchise agreement to avoid these fees. Proactive communication with Itan regarding any challenges in meeting these standards can also help mitigate the risk of incurring repeated noncompliance fees.