What sections of the Itan Franchise Agreement address trademarks and proprietary information?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 14: PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION]
ITEM 14 PATENTS, COPYRIGHTS, AND PROPRIETARY INFORMATION
No patents or pending patent applications are material to the franchise.
Although we have not filed an application for copyright registration for our Manual, website or marketing materials, we do claim a copyright to these items.
During the term of the Franchise Agreement, we allow you to use certain confidential and proprietary information (some of which constitute "trade secrets") relating to the development, marketing and operation of a Salon. Examples include:
- architectural plans, drawings and specifications for a prototype Salon
- site selection criteria
- methods, techniques, policies, procedures, standards and specifications
- supplier lists and information
- marketing and merchandising strategies
- information comprising the System
We own all ideas, improvements, inventions, marketing materials and other concepts you develop relating to a Salon. We also own all operational and customer data relating to your Salon. You must treat this data as confidential. We license you the right to use this data during the term of your Franchise Agreement. You must comply with all applicable data protection laws and our data processing and data privacy policies in the Manual.
We provide access to our confidential information through the Manual, training programs and other periodic support and guidance. You may use this information solely for purposes of developing, marketing and operating your Salon in compliance with the Franchise Agreement and Manual. You may not disclose our confidential information to anyone other than your employees, on a need-to-know basis, without our prior permission. We consider all information in the Manual to be confidential. All your employees and representatives (other than general managers) must sign the Confidentiality Agreement attached to the Franchise Agreement as ATTACHMENT "G" before you give them access to our confidential information.
You must promptly notify us if you discover an unauthorized use of our proprietary information or copyrighted materials. We are not required to act, but will respond as we deem appropriate. You may not control any proceeding or litigation involving allegations of unauthorized use of our proprietary information or copyrighted materials. We have no obligation to indemnify you for any expenses or damages you incur as a result of any such proceeding or litigation. There are no infringements known to us at this time.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 21–22)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Item 14 addresses patents, copyrights, and proprietary information. This item states that Itan claims a copyright to its Manual, website, and marketing materials, even though they have not filed for copyright registration.
During the franchise agreement term, Itan allows franchisees to use confidential and proprietary information, including trade secrets, related to the development, marketing, and operation of a Salon. Examples of confidential information include architectural plans, site selection criteria, methods, supplier lists, marketing strategies, and information comprising the System. Itan owns all ideas, improvements, inventions, marketing materials, operational, and customer data related to the Salon, licensing franchisees the right to use this data during the Franchise Agreement term, contingent upon compliance with data protection laws and privacy policies outlined in the Manual.
Item 14 further stipulates that franchisees must treat all data as confidential and comply with data protection laws outlined in the manual. Franchisees can only use this information for developing, marketing, and operating their Salon in compliance with the Franchise Agreement and Manual. Disclosure of confidential information is restricted to employees on a need-to-know basis, with all employees (excluding general managers) required to sign a Confidentiality Agreement (ATTACHMENT "G") before accessing confidential information. Franchisees must promptly report any unauthorized use of proprietary information or copyrighted materials, but Itan is not obligated to act or indemnify franchisees for expenses or damages from related proceedings or litigation.