Are there specific third-party suppliers from whom Itan franchisees must purchase or license certain Technology Systems?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
iers and other Persons relating to your Salon. You may not use them for any purpose unrelated to your Salon. We own the email addresses and accounts but allow you to use them during the Term. We have the independent right to view your email accounts and emails at any time.
- (f) Fees and Costs. You are responsible for all fees, costs and expenses associated with acquiring, licensing, utilizing, updating and upgrading Technology Systems. Certain Technology Systems must be purchased or licensed from third-party suppliers. We and/or our affiliate may develop proprietary Technology Systems (or components thereof) that become part of our System. If this occurs, you agree to: (i) pay us (or our affiliate) commercially reasonable licensing, support and maintenance fees; and (ii) upon request, sign our prescribed form of license agreement governing use of proprietary Technology Systems (or components thereof). We may enter into master agreements with licensors of Third-Party Technology and charge you for amounts we pay them based on your use of their Third-Party Technology. The technology fee includes all amounts you pay us and our affiliates relating to Technology Systems, including amounts paid for proprietary items and amounts we collect from you and remit to suppliers of Third-Party Technology. The technology fee may change based on changes to Technology Systems or prices charged by third parties with whom we enter into master agreements. The technology fee may include a reasonable administrative fee for the time, money and resources we invest to administer the technology platform and associated components, negotiate and manage contracts with third-party licensors, and collect and remit technology fees owed to third-party licensors on behalf of franchisees under master license arrangements. The technology fee does not include amounts you pay directly to third-party suppliers. The technology fee is due 10 days after invoicing or as we otherwise specify. We list the current technology fee in the Manual.
- 11.10.Remodeling and Maintenance. We may periodically require you to remodel and renovate your Salon to conform to our then-current standards and specifications. We will not require that you spend more than $25,000 (as adjusted from time to time for CPI changes) on remodeling and renovations of your Salon during any five (5) year period. However, there is no limit on the cost of remodeling and renovations we may require as a condition to renewal of your franchise rights. The foregoing cap on remodeling expenses does not include the cost of purchasing new equipment.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees are required to acquire and utilize all Technology Systems that Itan specifies from time to time. Some of these Technology Systems must be purchased or licensed from third-party suppliers. Itan may also develop proprietary Technology Systems, for which franchisees would need to pay commercially reasonable licensing, support, and maintenance fees to Itan or its affiliate. Additionally, franchisees may be required to sign a license agreement for these proprietary systems.
Itan may enter into master agreements with licensors of Third-Party Technology and charge franchisees for the amounts Itan pays them based on the franchisee's use of their Third-Party Technology. The technology fee includes amounts paid for proprietary items and amounts Itan collects from franchisees and remits to suppliers of Third-Party Technology. However, the technology fee does not include amounts franchisees pay directly to third-party suppliers.
The technology fee may change based on changes to Technology Systems or prices charged by third parties with whom Itan enters into master agreements. This fee may also include a reasonable administrative fee for the time, money, and resources Itan invests to administer the technology platform, manage contracts with third-party licensors, and collect/remit technology fees. The current technology fee is listed in the Manual, and it is due 10 days after invoicing or as otherwise specified by Itan.
It is important for prospective Itan franchisees to understand that Itan and its affiliates do not own certain Technology Systems (or components thereof) that franchisees must use to operate their Salon (i.e., Third-Party Technology). Therefore, Itan has no liability for any losses, damages, or expenses incurred as a result of Third-Party Technology not functioning properly. The franchisee's sole recourse for any issues with Third-Party Technology lies with the owner or licensor of that technology.