Under what conditions is an Itan Interim Manager liable to the franchisee?

According to Itan's 2025 Franchise Disclosure Document, an Interim Manager appointed by Itan to manage a franchisee's salon has limited liability to the franchisee. Specifically, the Interim Manager is only liable to the franchisee for "gross negligence or willful misconduct."

This means that the Itan franchisee bears the risk of any losses or damages resulting from the Interim Manager's actions, except in cases where the Interim Manager's conduct rises to the level of gross negligence or willful misconduct. Gross negligence typically involves a reckless disregard for the safety or well-being of others, while willful misconduct involves an intentional or deliberate wrongdoing.

It is important for a prospective Itan franchisee to understand this limitation of liability, as it could have significant financial implications. If the Interim Manager makes a mistake or acts negligently, but not to the level of gross negligence, the franchisee will likely be responsible for any resulting damages. The franchisee should carefully consider this risk and consult with an attorney or financial advisor to determine the appropriate level of insurance coverage and risk management strategies.