factual

Who is responsible for the expense of leasing or purchasing equipment and software for customer payments at an Itan franchise?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

site we approve for your Salon.

  • "Successor Agreement" means our then-current form of iTAN Franchise Agreement you must sign pursuant to §4.2 in connection with a renewal of your franchise rights.
  • "System" means our system developed for the operation of a Salon, the distinctive characteristics of which include: distinctive interior and exterior design, décor, signage, color scheme and other trade dress elements; proprietary retail products and equipment; high quality tanning services, technology and techniques; comprehensive training programs; advertising and marketing strategies; merchandising strategies; and operating system.
  • "Technology Systems" means and includes all information and communication technology systems we specify from time to time, including, without limitation, computer systems, point-of-sale systems, webcam systems, telecommunications systems, security systems, music systems and similar systems, together with the associated hardware, software (including cloud-based software) and related equipment, software applications, mobile apps, and third-party services relating to the establishment, use, maintenance, monitoring, security or improvement of these systems.
  • "Term" means the period of time beginning on the Effective Date and expiring on the earlier to occur of: (a) the 10th anniversary of the Effective Date; or (b) the date this Agreement is effectively terminated.
  • "Territory" means the protected territory for your Salon, as further described in §3.
  • "Third-Party Technology" means any Technology Systems (or components thereof) that are owned by Persons who are not affiliated with us.
  • "Transfer" means any direct or indirect, voluntary or involuntary, assignment, sale, conveyance, subdivision, sublicense or other transfer or disposition of:
  • (a) this Agreement (or any interest therein);
  • (b) the franchise or intellectual property rights granted by this Agreement (or any interest therein);
  • (c) the Business you conduct pursuant to this Agreement (or any interest therein);
  • (d) the Salon's assets, other than the sale of fixtures or equipment in the ordinary course of business; or
  • (e) an Equity Interest in the Business or Franchisee Entity;
  • including by: merger or consolidation; judicial award, order or decree; issuance of additional Equity Interests (including public and private offerings); foreclosure of a security interest by a lender;

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, the franchisee is responsible for the expenses associated with the Technology Systems. The Technology Systems include all information and communication technology systems that Itan specifies, such as computer systems and point-of-sale systems. This also includes all associated hardware and software.

It is important to note that Itan may use Third-Party Technology, meaning technology systems not owned by Itan. Itan has no liability for any losses, damages, or expenses incurred if the Third-Party Technology does not function properly. The franchisee's only recourse for issues with Third-Party Technology is against the owner or licensor of that technology.

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 the franchisee to obtain and maintain cyber insurance and business interruption insurance for technology disruptions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.