Under what conditions will Itan not impose a late fee?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We will not impose a late fee for any amount paid pursuant to §13.5 if, but only to the extent that, sufficient funds were available in your Account to be applied towards the payment when due; provided, however, that if we are unable to determine the amount due because you fail to record sales or submit Gross Sales reports in a timely manner, we may assess a late fee on the entire amount that was due.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan will not impose a late fee under specific conditions related to the franchisee's account funds. Specifically, if sufficient funds were available in the franchisee's account to cover a payment when it was due, Itan will not charge a late fee on that amount. However, this exception applies only to the extent that sufficient funds were actually available.
This condition is contingent on the franchisee maintaining sufficient funds in their designated account for payments. It is important to note that if Itan cannot determine the amount due because the franchisee fails to record sales or submit Gross Sales reports in a timely manner, Itan may assess a late fee on the entire amount that was due, regardless of the funds available in the account.
This policy encourages franchisees to maintain adequate funds in their accounts and to ensure timely and accurate reporting of sales data. Franchisees should prioritize these actions to avoid potential late fees. It is also important to note that this policy does not constitute an agreement by Itan to accept late payments or extend credit to the franchisee.