Is participation in system-wide programs mandatory for Itan franchisees?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
11.11.System Programs.
- (a) Generally. We may periodically develop and implement membership, loyalty, gift card and other system-wide programs. You must fully participate in all programs we designate as mandatory. In order to participate you must: (i) comply with all policies and procedures we establish for the program; (ii) purchase or license and utilize all equipment, software, mobile applications, technology and others items we designate as being necessary for program participation and pay all associated fees and costs; and (iii) pay us, our affiliate, or a third party we designate, all program fees, contributions or other amounts we require for program participation (collectively, "Program Participation Rules"). Program Participation Rules may be set forth in the Manual. We may change Program Participation Rules at any time and you must comply with the change. We may develop and implement new or successor programs and/or modify or terminate existing programs at any time.
- (b) Membership Program. We may require that all Salons operate under a membership model, in which case your Salon must honor memberships and the associated benefits and privileges even if the member purchased their membership from another Salon. We have the right to: (i) determine how membership fees are divided or otherwise accounted for; (ii) require that all membership fees be paid to us or deposited into a trust account we control for subsequent disbursement to the Salons(s) visited by the member; (iii) adopt policies regarding cooperation
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, participation in system-wide programs is mandatory for franchisees if designated by Itan. Itan may periodically develop and implement membership, loyalty, gift card, and other system-wide programs.
To participate in mandatory programs, franchisees must adhere to all policies and procedures established by Itan, purchase or license necessary equipment, software, mobile applications, and technology, and pay all associated fees and costs. Franchisees are also required to pay any program fees, contributions, or other amounts required by Itan, its affiliates, or designated third parties. These requirements are collectively referred to as "Program Participation Rules."
Itan retains the right to modify Program Participation Rules at any time, and franchisees must comply with these changes. Itan can also develop and implement new programs, modify existing ones, or terminate programs at any time. Furthermore, Itan may require all salons to operate under a membership model, where franchisees must honor memberships and associated benefits even if the membership was purchased at another location.
Itan also has the right to determine how membership fees are divided or accounted for and may require that all membership fees be paid to Itan or deposited into a trust account controlled by Itan for disbursement to the salons visited by the member. This level of control over system-wide programs and membership models highlights the importance of understanding the full scope of these programs and their financial implications for prospective Itan franchisees.