Who is responsible for the consequences resulting from improper use of Itan's Technology Systems?

According to Itan's 2025 Franchise Disclosure Document, the franchisee is solely responsible for any consequences resulting from the improper use or operation, or failure to properly maintain, update, or upgrade the Technology Systems. This includes the acquisition, operation, maintenance, updating, and upgrading of the Technology Systems. The Technology Systems relate to various aspects of the business, including purchasing, pricing, accounting, order entry, inventory control, security, data storage, client information, marketing, and communications.

This means that as an Itan franchisee, you bear the full responsibility for ensuring that all Technology Systems are used correctly, kept up-to-date, and properly maintained. Any failures or errors in these areas that lead to losses or damages will be your responsibility. This includes ensuring that employees are adequately trained in the use of these systems, as stated elsewhere in the FDD.

Itan may require franchisees to acquire new or substitute Technology Systems, or to replace, upgrade, or update existing systems at the franchisee's expense, with reasonable prior notice. Therefore, franchisees need to budget not only for the initial costs of the technology but also for ongoing maintenance, updates, and potential replacements as required by Itan. This responsibility extends to how the franchisee's Technology Systems integrate with Itan's and third-party systems.

Furthermore, the franchisee is responsible for protecting against computer viruses, bugs, power disruptions, communication line disruptions, internet access failures, internet content failures, date-related problems, and attacks by unauthorized persons. Itan may also require franchisees to obtain and maintain cyber insurance and business interruption insurance for technology disruptions, adding another layer of responsibility and cost for the franchisee.