Under what circumstances can Itan require a franchisee to acquire new or substitute Technology Systems?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We may require that you acquire new or substitute Technology Systems and/or replace, upgrade or update existing Technology Systems at your expense upon reasonable prior notice.
You are solely responsible for: (i) the acquisition, operation, maintenance, updating and upgrading of your Technology Systems; (ii) the manner in which your Technology Systems integrate and interface with our computer system and those of third parties; and (iii) any consequences resulting from improper use or operation, or failure to properly maintain, update or upgrade, Technology Systems.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may require franchisees to acquire new or substitute Technology Systems at their own expense. Itan must provide reasonable prior notice before requiring these changes.
The Technology Systems that Itan requires franchisees to use may relate to various aspects of the business, including purchasing, pricing, accounting, order entry, inventory control, security, data storage, retrieval and transmission, client information, client loyalty, marketing, communications, copying, printing and scanning, or any other business purpose Itan deems appropriate.
It is the franchisee's sole responsibility to handle the acquisition, operation, maintenance, updating, and upgrading of their Technology Systems. Franchisees are also responsible for how their Technology Systems integrate with Itan's computer system and those of third parties. Any consequences resulting from improper use, operation, or failure to maintain, update, or upgrade the Technology Systems are also the franchisee's responsibility. This means that franchisees need to budget not only for the initial costs of the technology but also for ongoing maintenance and potential upgrades that Itan may mandate to remain compliant with the Itan system.