Who is responsible for the fees associated with acquiring and updating Itan's Technology Systems?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for all fees, costs and expenses associated with acquiring, licensing, utilizing, updating and upgrading Technology Systems.
Certain Technology Systems must be purchased or licensed from third-party suppliers.
We and/or our affiliate may develop proprietary Technology Systems (or components thereof) that become part of our System.
If this occurs, you agree to: (i) pay us (or our affiliate) commercially reasonable licensing, support and maintenance fees; and (ii) upon request, sign our prescribed form of license agreement governing use of proprietary Technology Systems (or components thereof).
We may enter into master agreements with licensors of Third-Party Technology and charge you for amounts we pay them based on your use of their Third-Party Technology.
The technology fee includes all amounts you pay us and our affiliates relating to Technology Systems, including amounts paid for proprietary items and amounts we collect from you and remit to suppliers of Third-Party Technology.
The technology fee may change based on changes to Technology Systems or prices charged by third parties with whom we enter into master agreements.
The technology fee may include a reasonable administrative fee for the time, money and resources we invest to administer the technology platform and associated components, negotiate and manage contracts with third-party licensors, and collect and remit technology fees owed to third-party licensors on behalf of franchisees under master license arrangements.
The technology fee does not include amounts you pay directly to third-party suppliers.
The technology fee is due 10 days after invoicing or as we otherwise specify.
We list the current technology fee in the Manual.
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 all fees, costs, and expenses associated with acquiring, licensing, utilizing, updating, and upgrading the Technology Systems. This includes costs related to third-party Technology Systems that the franchisee must purchase or license. Itan or its affiliates may develop proprietary Technology Systems, in which case the franchisee must pay commercially reasonable licensing, support, and maintenance fees.
Itan may enter into master agreements with licensors of third-party technology and charge the franchisee for amounts Itan pays them based on the franchisee's use of the third-party technology. This is covered in the technology fee, which includes amounts paid for proprietary items and amounts Itan collects from the franchisee to remit to suppliers of third-party technology. The technology fee does not include amounts franchisees pay directly to third-party suppliers.
The technology fee may change based on changes to the Technology Systems or prices charged by third parties with whom Itan enters into master agreements. The technology fee may also include a reasonable administrative fee for the time, money, and resources Itan invests to administer the technology platform and associated components, negotiate and manage contracts with third-party licensors, and collect and remit technology fees owed to third-party licensors on behalf of franchisees under master license arrangements. The technology fee is due 10 days after invoicing or as Itan otherwise specifies, and the current technology fee is listed in the Manual.
This means that as an Itan franchisee, you should anticipate ongoing technology-related expenses. These expenses can fluctuate based on changes implemented by Itan or third-party vendors. It is important to review the Manual for the current technology fee and to factor in potential increases when budgeting for your franchise.