Under what conditions can an Itan franchisee request a customer's account be transferred to their salon?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ave the right to: (i) determine how membership fees are divided or otherwise accounted for; (ii) require that all membership fees be paid to us or deposited into a trust account we control for subsequent disbursement to the Salons(s) visited by the member; (iii) adopt policies regarding cooperation
between franchisees relating to members who utilize the services of, or enjoy membership privileges at, multiple Salons; and (iv) designate the use of new Technology Systems to monitor sales and allocate payments to the Salon(s) visited by the member, either in whole or on a percentage basis. Under current policy, you may request that we transfer a customer's account to you if the customer obtains more than 60% of his or her service sessions from your Salon over the course of at least three (3) consecutive active months (if the account is transferred to you and the customer also has a TANOLOGY® lotion membership and incurred their first committed billing prior to the date of the account transfer, then the customer's TANOLOGY® lotion membership may also be assigned to you along with the customer's account). We may charge you a fee of up to $5 in connection with any such trans
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an Itan franchisee can request a customer's account be transferred to their salon under specific conditions. The franchisee can make this request if the customer obtains more than 60% of their service sessions from the franchisee's salon over at least three consecutive active months. This policy is designed to ensure that the franchisee who is primarily serving the customer benefits from that customer's business.
If the account is transferred and the customer has a TANOLOGY® lotion membership with billing prior to the transfer date, the TANOLOGY® lotion membership may also be assigned to the franchisee. This ensures continuity of service and benefits for the customer while consolidating the account management under the franchisee who provides the majority of the services.
Itan may charge the franchisee a fee of up to $5 in connection with the account transfer. Additionally, Itan may require the franchisee to use a specific form of membership agreement and to have an attorney review the agreement for compliance with local laws, with any changes requiring Itan's approval. These stipulations protect Itan's brand standards and ensure legal compliance across all franchise locations.