Does Itan have specific policies regarding the utilization of a 'membership' model for customer loyalty?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Generally. We may periodically develop and implement membership, loyalty, gift card and other system-wide programs. You must fully participate in all programs we designate as mandatory. In order to participate you must: (i) comply with all policies and procedures we establish for the program; (ii) purchase or license and utilize all equipment, software, mobile applications, technology and others items we designate as being necessary for program participation and pay all associated fees and costs; and (iii) pay us, our affiliate, or a third party we designate, all program fees, contributions or other amounts we require for program participation (collectively, "Program Participation Rules"). Program Participation Rules may be set forth in the Manual. We may change Program Participation Rules at any time and you must comply with the change. We may develop and implement new or successor programs and/or modify or terminate existing programs at any time.
- (b) Membership Program. We may require that all Salons operate under a membership model, in which case your Salon must honor memberships and the associated benefits and privileges even if the member purchased their membership from another Salon. We have the right to: (i) determine how membership fees are divided or otherwise accounted for; (ii) require that all membership fees be paid to us or deposited into a trust account we control for subsequent disbursement to the Salons(s) visited by the member; (iii) adopt policies regarding cooperation
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 36)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may require that all salons operate under a membership model. If Itan mandates this model, franchisees must honor memberships, including all associated benefits and privileges, even if the member initially purchased the membership from a different Itan salon.
Itan retains specific rights regarding the membership program. These rights include determining how membership fees are divided or accounted for, and requiring that all membership fees be paid to Itan or deposited into a trust account controlled by Itan. These funds would then be disbursed to the Itan salons visited by the member.
Itan may also develop and implement membership and loyalty programs, and franchisees must fully participate in all programs designated as mandatory. Participation necessitates compliance with all policies and procedures established for the program, purchasing or licensing necessary equipment and software, and paying all required program fees. Itan can change these program participation rules at any time, and franchisees must comply with these changes. Itan also has the right to develop new programs or modify/terminate existing ones at any time.