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Can Itan set maximum or minimum prices for membership fees and other goods and services?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 11.5. Pricing. We will provide you with our suggested retail pricing. You may deviate from our suggested retail pricing at your discretion; provided, however, that: (a) you must obtain our approval of any deviation more than 5% higher or lower than our suggested retail pricing unless such pricing is part of a temporary advertising campaign we approved; and (b) we may set maximum or minimum prices, or specify the prices, for membership fees and/or other goods and services you sell to the extent permitted by applicable Law, including limited time promotional pricing.

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, Itan provides suggested retail pricing to franchisees, but franchisees have some pricing flexibility. Franchisees can deviate from the suggested retail pricing at their discretion. However, Itan's approval is required for any price deviation that is more than 5% higher or lower than the suggested retail price, unless it is part of a temporary advertising campaign that Itan has already approved.

Furthermore, Itan retains the right to set maximum or minimum prices, or even specify the exact prices, for membership fees and other goods and services that franchisees sell. This control is subject to applicable laws, including those related to limited-time promotional pricing. This means Itan can dictate the pricing of core offerings like memberships to ensure brand consistency and competitiveness across all locations.

This pricing policy has several implications for prospective Itan franchisees. While franchisees have some autonomy in setting prices, Itan maintains significant control over pricing, especially for membership fees and promotional offers. Franchisees need to be aware that Itan can mandate specific pricing strategies, which could impact their profit margins and revenue projections. Franchisees should discuss Itan's pricing strategies and promotional plans during the due diligence process to fully understand the potential impact on their business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.