Under what conditions must I obtain Itan's approval for deviating from suggested retail pricing?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Provide you with our suggested retail pricing. You may deviate from our suggested retail pricing at your discretion. However, you must obtain our approval of any deviation more than 5% higher or lower than our suggested retail pricing, unless the pricing is part of a temporary advertising campaign we approved. To the extent permitted by applicable law, we may set maximum or minimum prices, or specify the prices, on the goods and services you sell, including limited time promotional pricing. (§11.5)
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees can generally set their own retail prices. However, Itan requires franchisees to obtain approval for any price deviation that is more than 5% higher or lower than Itan's suggested retail pricing. This policy ensures that prices remain relatively consistent across all Itan locations, maintaining brand image and customer expectations.
The requirement to seek approval for significant price deviations does not apply if the pricing change is part of a temporary advertising campaign that Itan has already approved. This exception allows franchisees to participate in promotional activities without needing separate approval for the associated price adjustments.
Itan also retains the right, to the extent permitted by law, to set maximum or minimum prices, or even specify the exact prices for goods and services, including limited-time promotional pricing. This provision gives Itan significant control over pricing strategies, potentially impacting a franchisee's ability to respond to local market conditions or competitive pressures, but also ensuring brand consistency and profitability.