Under what condition will Itan adjust fixed dollar amount fees based on CPI?

According to Itan's 2025 Franchise Disclosure Document, Itan may adjust fixed dollar amount fees based on changes to the U.S. Consumer Price Index (CPI). However, Itan can only increase these fees if the CPI increase is more than 5% higher than the CPI in effect on either the effective date of the Franchise Agreement for the initial fee adjustment, or the date Itan implemented the last fee adjustment for subsequent adjustments.

In practical terms, this means that if the cost of living, as measured by the CPI, rises significantly, Itan reserves the right to increase certain fees to account for inflation. However, this adjustment is not automatic. Itan will only make an adjustment if the CPI increase exceeds a 5% threshold from the baseline CPI at the time of the franchise agreement or the last adjustment. This protects franchisees from small, incremental fee increases due to minor inflation fluctuations.

Itan must notify franchisees of any CPI adjustment at least 60 days before the adjustment takes effect, providing franchisees with advance notice to prepare for the change. Furthermore, Itan may implement no more than one fee adjustment during any 5-year period. This limitation provides franchisees with a degree of predictability and prevents frequent fee adjustments based on short-term CPI fluctuations. This policy helps to balance Itan's need to keep pace with inflation and the franchisees' need for stable and predictable operating costs.