What is the timeframe within which an Itan franchisee must notify Itan of a Reportable Event?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You must notify us within two (2) business days after you become aware of any of the following (each, a "Reportable Event"):
(a) the occurrence of an incident at your Salon involving significant personal injury;
(b) the issuance of a citation or notice of violation by a Governmental Authority (or the commencement of an inquiry you believe is reasonably likely to lead to a citation or notice of violation) relating to a health or safety matter involving your Salon;
(c) the commencement (or written threat) of an action, suit or proceeding against you, your Owners and/or your Salon that is reasonably likely to materially and adversely affect you, your Salon or the goodwill associated with the Marks; or
(d) the conviction or indictment of any Owner or member of your management team for a felony or other crime reasonably likely to materially and adversely affect you, your Salon or the goodwill associated with the Marks.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee must notify Itan within two business days after becoming aware of a Reportable Event. The FDD defines a Reportable Event as any occurrence described in Section 15.6 that the franchisee is obligated to report to Itan.
Reportable Events include incidents at the salon involving significant personal injury, the issuance of a citation or notice of violation by a Governmental Authority relating to a health or safety matter involving the salon, the commencement (or written threat) of an action, suit, or proceeding against the franchisee, their owners, and/or their salon that is reasonably likely to materially and adversely affect them, their salon, or the goodwill associated with the Marks, or the conviction or indictment of any owner or member of the management team for a felony or other crime reasonably likely to materially and adversely affect the franchisee, their salon, or the goodwill associated with the Marks.
This requirement ensures that Itan is promptly informed of any significant issues that could impact the brand's reputation, financial stability, or legal standing. The short notification window underscores the importance of franchisees maintaining open communication with Itan and being proactive in addressing potential problems. This allows Itan to provide support, guidance, and potentially mitigate any negative consequences arising from such events.