Does Itan require franchisees to utilize a 'membership' model?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Salons currently operate under a membership model. Customers who choose to purchase a membership ("members") enjoy access to an unlimited number of tanning or spa sessions at any Salon. Members also receive discounts on retail products purchased from Salons. All Salons must honor memberships and the associated benefits and privileges even if the member purchased their membership from a different Salon.
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, Itan salons operate under a membership model. Customers can purchase a membership to gain access to an unlimited number of tanning or spa sessions at any Itan salon. These members also receive discounts on retail products.
All Itan salons must honor memberships, including the associated benefits and privileges, even if the member purchased their membership from a different location. This indicates a unified system where customer memberships are valid across all franchise locations.
Itan also requires franchisees to 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. Itan may require that franchisees utilize a specific form of membership agreement, and may also require franchisees to hire an attorney to review the membership agreement and advise them of any changes necessary to comply with local laws. Itan must approve any changes prior to implementation.
Itan also provides electronic funds processing services for customers with membership or service agreements that authorize electronic debiting. Franchisees must pay Itan a monthly EFT processing fee of $10 per month for this service.