What is the role of the Managing Owner in an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
Ownership Participation
You must designate an owner with overall responsibility for the management and operation of your Salon (the "Managing Owner"). The Managing Owner must: (a) be approved by us; (b) successfully complete all training programs we require; (c) dedicate full-time efforts to the Business; and (d) at all times hold at least a 20% ownership interest in the franchise (or the entity that is the franchisee under the Franchise Agreement) unless we waive this requirement. The Managing Owner is not required to provide onsite management of your Salon as long as a trained manager is onsite. Any new Managing Owner you appoint must successfully complete our then-current initial training program before assuming responsibility for the management of your Salon.
We do not require that any of your other owners personally participate in the operation or management of your Business. If you are an entity, each owner (i.e., each person holding a direct or indirect ownership interest in the entity) and the spouse of each owner must sign the Franchise Owner Agreement attached to the Franchise Agreement as ATTACHMENT "D". By signing the Franchise Owner Agreement, the owner (or spouse of the
owner) agrees to: (a) comply with all brand protection covenants, covenants that protect our intellectual property and transfer restrictions in the Franchise Agreement; and (b) guarantee the franchisee's financial obligations.
General Managers
You may hire general managers to assist the Managing Owner with onsite management and supervision of the Salon. Any person you hire as a general manager must: (a) be approved by us; (b) successfully complete all training programs we require; and (c) sign the Brand Protection Agreement attached to the Franchise Agreement as ATTACHMENT "F". The Managing Owner must supervise each general manager to ensure the Salon is operated in accordance with the Franchise Agreement and Manual. The Managing Owner and/or a general manager must be present at your Salon at least 40 hours per week.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 35–36)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the Managing Owner is a crucial figure responsible for the overall management and operation of the Itan salon. The Managing Owner must be approved by Itan, successfully complete all required training programs, dedicate full-time efforts to the business, and maintain at least a 20% ownership interest in the franchise, unless Itan waives this requirement.
While the Managing Owner isn't required to be onsite at the salon, a trained manager must be present. The Managing Owner is responsible for supervising any general managers to ensure the salon operates according to the Franchise Agreement and the Brand Standards Manual. Either the Managing Owner or a general manager must be present at the salon for at least 40 hours per week. When neither is onsite during business hours, either the Managing Owner or a general manager must be readily accessible by phone or email.
Furthermore, any new Managing Owner appointed must successfully complete Itan's initial training program before taking on management responsibilities. Itan may also require the Managing Owner to attend refresher or supplemental training courses. If Itan determines the salon isn't operating in compliance with the Franchise Agreement and the Manual, the Managing Owner may be required to attend remedial training. The initial training program includes remote, hands-on, and onsite training components.