Does Itan require franchisees to sign a Confidentiality Agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
igin, cannot be used as a defense against our enforcement of this Agreement.
- (d) Each section of this Agreement (and portion thereof) is severable. If any section (or portion thereof) is unenforceable, it shall not affect the enforceability of any other section (or portion thereof). A court may revise any provision of this Agreement to the extent necessary to make the provision enforceable.
This Brand Protection Agreement is executed as of the date or dates set forth below.
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ATTACHMENT "G"
TO FRANCHISE AGREEMENT
CONFIDENTIALITY AGREEMENT
[See Attached]
CONFIDENTIALITY AGREEMENT
This Agreement (this "Agreement") is entered into by the undersigned ("you") in favor of iTAN Franchising, Inc., a California corporation and its successors and assigns ("us").
- 1. DEFINITIONS. Capitalized terms that are not defined above have the meanings given to them below:
- "Business Data" means all data pertaining to Franchisee's Salon, customers and business operations, whether collected by you, Franchisee, us or any other person.
- "Confidential Information" means and includes: (a) Know-How; (b) Business Data; (c) information in the Manual or comprising the System; (d) terms of the Franchise Agreement (and related agreements) signed by Franchisee in connection with the Salon;
Source: Item 22 — CONTRACTS (FDD pages 43–44)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchise agreement includes a Confidentiality Agreement that must be signed by certain employees, as detailed in ATTACHMENT "G" of the agreement. This agreement is designed to protect Itan's intellectual property and confidential information, recognizing its vital importance to the success of both the franchisor and its franchisees.
The Confidentiality Agreement outlines specific obligations for employees or independent contractors of the franchisee. These individuals may gain knowledge of Itan's System and Know-How, making it crucial to prevent misuse of the company's intellectual property. By signing the agreement, individuals agree to refrain from using intellectual property or confidential information outside the scope of operating the franchisee's salon. They must maintain confidentiality, avoid unauthorized copying of documents, and take necessary steps to prevent unauthorized use or disclosure of confidential information. These obligations cease when the individual is no longer associated with the franchisee.
The agreement defines "Confidential Information" broadly, including Know-How, Business Data, information in the Manual or System, terms of the Franchise Agreement, and other sensitive business details. This broad definition underscores the importance Itan places on protecting its proprietary information. Prospective franchisees should carefully review the terms of the Confidentiality Agreement and ensure that their employees understand and are willing to comply with these obligations, as failure to do so could have serious repercussions for the franchise.