Who has sole authority and responsibility for all employment-related decisions at an Itan Salon?

According to Itan's 2025 Franchise Disclosure Document, the franchisee has sole authority and responsibility for all employment-related decisions at their Itan salon. This includes decisions related to hiring, promotion, hours worked, rates of pay, benefits, work assignments, training, and working conditions. Itan does not provide guidance or advice on these matters, emphasizing the franchisee's autonomy in managing their employees.

This arrangement means that the Itan franchisee is considered the sole employer of their salon staff. To ensure clarity, franchisees must inform their employees that they exclusively supervise their activities and dictate how they perform their tasks. Franchisees are required to use their legal business entity name, not Itan's trademarks or a fictitious name, on all employment-related documents, such as applications, pay stubs, paychecks, and employment agreements.

To further reinforce this relationship, Itan requires franchisees to have each employee sign an acknowledgment form that explains the nature of the franchise relationship and confirms that the franchisee is their sole employer. Additionally, franchisees must post a conspicuous notice in the back-of-house area, reiterating the franchise relationship and clarifying that the franchisee, not Itan, is the employee's sole employer. Itan may prescribe the form and content of this notice.

This setup protects Itan from potential liability related to employment claims. The franchisee's full control over employment matters means they are responsible for ensuring compliance with labor laws and managing employee relations effectively. This also means that Itan franchisees must be well-versed in employment law or seek legal counsel to ensure they are making informed decisions and avoiding potential legal issues.