Under what conditions must an Itan franchisee obtain approval for deviating from suggested retail pricing?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.5. Pricing. We will provide you with our suggested retail pricing. You may deviate from our suggested retail pricing at your discretion; provided, however, that: (a) you must obtain our approval of any deviation more than 5% higher or lower than our suggested retail pricing unless such pricing is part of a temporary advertising campaign we approved; and (b) we may set maximum or minimum prices, or specify the prices, for membership fees and/or other goods and services you sell to the extent permitted by applicable Law, including limited time promotional pricing.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees have some flexibility in setting prices but must adhere to certain guidelines. Itan will provide suggested retail pricing, and franchisees can deviate from these suggestions at their discretion.
However, if a franchisee wants to deviate more than 5% higher or lower than Itan's suggested retail price, they must obtain prior approval from Itan. This condition does not apply if the pricing change is part of a temporary advertising campaign that Itan has already approved.
Itan also retains the right to set maximum or minimum prices, or even specify the exact prices, for membership fees and other goods and services, to the extent permitted by law. This includes the ability to set prices for limited-time promotional offers. This pricing control allows Itan to maintain brand consistency and manage promotional activities across all franchise locations, while still allowing some local pricing flexibility.