Is Itan required to create a franchise advisory council?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12. FRANCHISE ADVISORY COUNCIL. We may, but need not, create a franchise advisory council to provide us with suggestions to improve the System, including matters such as marketing, operations and new product or service suggestions. We consider all suggestions in good faith but are not bound by them. The council would be established and operated according to rules and regulations we periodically approve, including procedures governing the selection of council representatives to communicate with us on matters raised by the council. You would have the right to be a council member as long as you comply with this Agreement and do not act in a disruptive, abusive or counter-productive manner. As a member, you would be entitled to all voting rights and privileges granted to other council members. Each member would have one vote on all matters on which members are authorized to vote.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan is not required to create a franchise advisory council. The FDD states that Itan may choose to establish one, but it is not obligated to do so.
If Itan chooses to create a franchise advisory council, the purpose would be to gather suggestions for improving the Itan system. This includes areas like marketing, operations, and new product or service ideas. Itan would consider these suggestions in good faith, but the company is not required to implement them.
The franchise advisory council would operate under rules and regulations approved by Itan, including procedures for selecting representatives. Franchisees in good standing would have the right to be council members, with voting rights and privileges, as long as they comply with the Franchise Agreement and do not act in a disruptive, abusive, or counter-productive manner.