factual

Does Itan require franchisees to purchase or license specific equipment or software to participate in system-wide programs?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

You must comply with any maintenance, cleaning or facility upkeep schedule we prescribe.

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 that Itan designates as mandatory requires franchisees to purchase or license and utilize all equipment, software, mobile applications, technology and other items that Itan deems necessary. Franchisees must also pay all associated fees and costs. These programs could include membership, loyalty, and gift card programs.

The Program Participation Rules, which may be detailed in the Manual, can be changed at any time, and franchisees must comply with these changes. Itan retains the right to develop and implement new programs, modify existing ones, or terminate programs as it sees fit.

If Itan requires all salons to operate under a membership model, franchisees must honor memberships and associated benefits, even if the membership was purchased at another location. Itan has the right to determine how membership fees are divided, require that all membership fees be paid to them or deposited into a trust account they control, and adopt policies regarding cooperation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.