What are the requirements for an Itan franchisee to participate in system-wide programs?
Itan Franchise · 2025 FDDAnswer 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 is mandatory for franchisees when designated by Itan. These programs may include membership, loyalty, and gift card initiatives. To participate, franchisees must adhere to specific requirements established by Itan.
The requirements include compliance with all policies and procedures set forth for the program. Franchisees must also purchase or license and utilize all necessary equipment, software, mobile applications, technology, and other items that Itan deems necessary for participation. They are also responsible for all associated fees and costs. Additionally, franchisees must pay Itan, its affiliates, or a designated third party all required program fees, contributions, or other amounts. These requirements are collectively referred to as "Program Participation Rules."
Itan retains the right to modify these Program Participation Rules at any time, and franchisees are obligated to comply with any changes. Itan also has the discretion to develop and implement new or successor programs, as well as modify or terminate existing programs. Furthermore, Itan may require that all salons operate under a membership model, where franchisees must honor memberships and associated benefits, even if the membership was purchased at another location. Itan also has the right to determine how membership fees are divided or managed, potentially requiring that all membership fees be paid to Itan or deposited into a trust account controlled by Itan for disbursement to salons.