For what purpose may franchisees use Itan's confidential information?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
copyright registration for our Manual, website or marketing materials, we do claim a copyright to these items.
During the term of the Franchise Agreement, we allow you to use certain confidential and proprietary information (some of which constitute "trade secrets") relating to the development, marketing and operation of a Salon. Examples include:
- architectural plans, drawings and specifications for a prototype Salon
- site selection criteria
- methods, techniques, policies, procedures, standards and specifications
- supplier lists and information
- marketing and merchandising strategies
- information comprising the System
We own all ideas, improvements, inventions, marketing materials and other concepts you develop relating to a Salon. We also own all operational and customer data relating to your Salon. You must treat this data as confidential. We license you the right to use this data during the term of your Franchise Agreement. You must comply with all applicable data protection laws and our data processing and data privacy policies in the Manual.
We provide access to our confidential information through the Manual, training programs and other periodic support and guidance. You may use this information solely for purposes of developing, marketing and operating your Salon in compliance with the Franchise Agreement and Manual.
Source: Item 14 — PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION (FDD page 35)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees may use the franchisor's confidential information solely for the purposes of developing, marketing, and operating their Itan salon. This usage must be in compliance with both the Franchise Agreement and the Manual provided by Itan. This means that franchisees are granted a limited license to utilize Itan's proprietary knowledge and resources, but only to the extent necessary for running their franchised business.
It is important to note that franchisees are explicitly prohibited from using Itan's confidential information for any other business or purpose outside of their franchised Itan salon. They are also restricted from disclosing this information to anyone, except for their employees who need to know it for their job, and even then, only with Itan's prior permission. All employees (excluding general managers) must sign a confidentiality agreement before gaining access to this information. This underscores the importance Itan places on protecting its trade secrets and proprietary information.
Itan also owns all ideas, improvements, inventions, marketing materials, operational and customer data related to the franchisee's salon. Franchisees are granted a license to use this data during the term of the Franchise Agreement but must treat it as confidential and comply with all applicable data protection laws and Itan's data processing and privacy policies outlined in the Manual. Franchisees must promptly inform Itan if they discover any unauthorized use of Itan's proprietary information or copyrighted materials, although Itan is not obligated to take action but will respond as it deems appropriate.