What specific customer information must an Itan franchisee assign upon termination?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
"Business Data" means all data pertaining to Franchisee's Salon, customers and business operations, whether collected by you, Franchisee, us or any other person.
"Confidential Information" means and includes: (a) Know-How; (b) Business Data, including the names, contact information and other data pertaining to current, former, or prospective Salon customers; (c) information in the Manual or comprising the System; (d) terms of the Franchise Agreement (and related agreements) signed by Franchisee in connection with the Salon; and (e) all other concepts, ideas, trade secrets, financial information, marketing strategies, expansion strategies, studies, supplier information, customer information, franchisee information, investor information, flow charts, inventions, mask works, improvements, discoveries, standards, specifications, formulae, recipes, designs, sketches, drawings, policies, processes, procedures, methodologies and techniques, together with analyses, compilations, studies or other documents that are: (i) designated as confidential; (ii) known by you to be considered confidential by us; and/or (iii) reasonably to be considered confidential due to their nature.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 36–39)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must maintain the confidentiality of 'Business Data,' which includes specific customer information. This Business Data encompasses all data related to the franchisee's salon, customers, and business operations, regardless of who collected it.
Specifically, the definition of 'Confidential Information' includes 'Business Data, including the names, contact information and other data pertaining to current, former, or prospective Salon customers.' This means that upon termination of the franchise agreement, an Itan franchisee is obligated to protect and transfer all customer-related data, including names, contact details, and any other information pertaining to current, former, and prospective salon clients. This obligation is reinforced by the confidentiality agreement that franchisees sign.
This requirement ensures that Itan retains control over its customer base and business operations, even after a franchise agreement ends. For a prospective franchisee, this highlights the importance of understanding the scope of confidential information and the responsibilities associated with protecting and transferring this data upon termination or transfer of the franchise. Failure to comply with these requirements could result in legal repercussions and damage to the Itan brand.