Does Itan have the power to form, change, or dissolve the advisory council?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but need not, create a franchise advisory council to provide us with suggestions to improve the System,
including matters such as marketing, operations and new product or service suggestions. We would consider all suggestions in good faith, but would not be bound by them. The council would be established and operated according to rules and regulations we periodically approve, including procedures governing the selection of council representatives to communicate with us on matters raised by the council. You would have the right to be a member of the council as long as you comply with your Franchise Agreement and do not act in a disruptive, abusive or counter-productive manner, as determined by us in our discretion. As a member, you would be entitled to all voting rights and privileges granted to other members of the council. Any company-owned Salon would also be a member of the council. Each member would be granted 1 vote on all matters on which members are authorized to vote. We have the power to form, change or dissolve the advisory council in our discretion.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan has the authority to establish, modify, or terminate the advisory council at its discretion. While Itan may create a franchise advisory council to gather suggestions for improving the Itan system, such as marketing, operations, and new product or service ideas, it is not obligated to do so.
Franchisees have the right to be a member of the council as long as they comply with their Franchise Agreement and do not act in a disruptive, abusive or counter-productive manner, as determined by Itan. As a member, franchisees are entitled to all voting rights and privileges granted to other members of the council. Any company-owned Salon would also be a member of the council, and each member would be granted 1 vote on all matters on which members are authorized to vote.
This discretionary power allows Itan to adapt the advisory council's structure and existence to best suit the evolving needs of the franchise system. However, it also means that franchisees have no guarantee of a permanent advisory council or influence over its composition, which could impact their ability to provide input on important system-wide decisions.