Under what conditions might company-owned Itan salons contribute to the Brand Fund using a modified amount or timing?

According to Itan's 2025 Franchise Disclosure Document, company-owned salons typically contribute to the Brand Fund on the same basis as franchisees. However, Itan retains the flexibility to modify the amount or timing of these contributions for its company-owned salons. Specifically, if Itan modifies the required contributions, any company-owned salon established or acquired after that modification may contribute to the Brand Fund based on the new, modified terms.

This clause provides Itan with the ability to adjust its financial strategy for company-owned salons without necessarily extending the same changes to franchised locations. This could be advantageous for Itan in managing its corporate finances or testing new marketing approaches in its own stores before implementing them across the franchise system.

For a prospective franchisee, this highlights a potential difference in financial obligations between franchised and company-owned locations. While franchisees are generally subject to a brand fund fee not exceeding 2% of gross sales, the franchisor has the latitude to alter this for its own stores. It would be prudent for a potential Itan franchisee to inquire about the circumstances under which such modifications might occur and how they could impact the competitive landscape between franchised and company-owned salons.