Does Itan have the right to determine how membership fees are divided among franchisees?

According to Itan's 2025 Franchise Disclosure Document, Itan has specific rights regarding the division and handling of gift card proceeds. Itan has the right to determine how gift card proceeds are divided or accounted for, require that these proceeds be paid to them or deposited into a trust account controlled by Itan for disbursement to the salons where the gift cards are redeemed, and retain proceeds from unredeemed gift cards.

This means that as an Itan franchisee, you must adhere to Itan's policies regarding gift card programs. You are obligated to participate in any gift card program Itan establishes and honor all gift cards, even those purchased from other salons or directly from Itan. You are also prohibited from selling gift cards that Itan has not approved.

These stipulations ensure that Itan maintains control over the financial aspects of the gift card program, including how the money is distributed among franchisees and what happens to unredeemed balances. This level of control is common in franchise systems to maintain brand consistency and manage financial flows effectively. However, it's important for a prospective franchisee to understand these terms and ensure they are comfortable with Itan's control over gift card proceeds.