Who is responsible for paying wages, commissions, and benefits to employees of an Itan Salon?

According to Itan's 2025 Franchise Disclosure Document, the franchisee is responsible for paying wages, commissions, and benefits to the employees of their Itan salon. The FDD states that the franchisee must pay all associated wages, commissions, benefits, worker's compensation premiums, and payroll taxes (and other withholdings required by Law). The document clarifies that these employees are employees of the franchisee, not of Itan.

This means that as an Itan franchisee, you will have the responsibility of handling all aspects of employee compensation and benefits. This includes not only the direct wages and commissions paid to employees but also the costs associated with worker's compensation insurance, payroll taxes, and any benefits you choose to offer, such as health insurance or retirement plans. You will also be responsible for ensuring that all payments and withholdings comply with applicable laws.

It is important for prospective Itan franchisees to understand the full scope of these responsibilities, as employee-related costs can be a significant expense for the business. Accurately budgeting for these costs and effectively managing employees will be crucial for the financial success of the franchise. Additionally, franchisees should be aware of their obligations under labor laws and ensure they are in compliance to avoid potential legal issues.

Itan emphasizes that it does not control the day-to-day activities of the franchisee's employees or how they perform their tasks. The franchisee has sole authority and responsibility for all employment-related decisions. This reinforces the franchisee's role as the employer and their responsibility for all employment-related costs and compliance matters.