Does Itan require franchisees to participate in customer loyalty programs?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
er. We may require that you utilize the form of membership agreement we specify. We may require you to hire an attorney, licensed in your state, to review the membership agreement and advise you of any changes necessary to comply with local Laws. We must approve any changes prior to implementation.
- (c) Loyalty Program. You must fully participate and implement all required customer loyalty, rewards and other affinity programs designed to increase customer loyalty, generate new customers or improve overall demand for Salons.
- (d) Gift Card Program. You must participate in any gift card program we establish and honor all gift cards, even if purchased from us or another Salon. You may not sell gift cards we have not approved. We have the right to: (i) determine how gift card proceeds are divided or otherwise accounted for; (ii) require that gift card proceeds be paid to us or deposited into a trust account we control for subsequent disbursement to the Salons(s) where the gift card is redeemed; and (iii) retain proceeds from unredeemed gift cards.
- (e) Processing Customer Payments and Account Transfers. We currently provide electronic funds processing services on your behalf with respect to each customer who has signed a membership or other service agreement with you that authorizes electronic debiting of the customer's account for amounts owed to you. You agree to pay us a monthly EFT processing fee of $10 per month for this service. We will credit your Account for the amount of the customer payment less any applicable bank fees or charges. If any payment owed to us or our affiliate is past due, we may deduct such payment from any monies the customer owes you under the membership or service agreement. We may terminate this service upon 60 days' prior notice.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 36)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must fully participate in customer loyalty programs. Specifically, Itan requires franchisees to implement all required customer loyalty, rewards, and other affinity programs designed to increase customer loyalty, generate new customers, or improve overall demand for Salons.
Itan may periodically develop and implement membership, loyalty, gift card, and other system-wide programs. Franchisees must fully participate in all programs Itan designates as mandatory. To participate, franchisees must comply with all policies and procedures Itan establishes for the program, purchase or license and utilize all equipment, software, mobile applications, technology, and other items Itan designates as necessary for program participation and pay all associated fees and costs. Franchisees must also pay Itan, its affiliate, or a third party Itan designates, all program fees, contributions, or other amounts Itan requires for program participation.
These Program Participation Rules may be set forth in the Manual, and Itan may change them at any time, requiring franchisees to comply with the change. Itan retains the right to develop and implement new or successor programs and/or modify or terminate existing programs at any time. This means that franchisees must stay updated with any changes to the loyalty programs and be prepared to adapt their business operations accordingly. Franchisees are also required to participate in any gift card program Itan establishes and honor all gift cards, even if purchased from Itan or another Salon, and may not sell gift cards Itan has not approved.