Under what conditions can Itan revoke a Managing Owner's right to train general managers?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
After successfully completing initial training, your Managing Owner may provide initial training for new general managers you hire. However we may, for good cause, revoke the Managing Owner's right to train general managers. If we inspect your Salon and determine you are not operating in compliance with the Franchise Agreement and the Manual, we may require that your Managing Owner and general managers attend remedial training relevant to the operational deficiencies we observed.
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, after a Managing Owner successfully completes initial training, they may train new general managers. However, Itan can revoke this right for 'good cause.'
Specifically, if Itan inspects a franchisee's salon and determines that it is not operating in compliance with the Franchise Agreement and the Manual, Itan may require the Managing Owner and general managers to attend remedial training. This remedial training would focus on correcting the operational deficiencies observed during the inspection.
In practical terms, this means an Itan franchisee's Managing Owner could lose the ability to train new general managers if the salon repeatedly fails to meet Itan's operational standards. This could result in additional costs for the franchisee, as they may need to send new general managers to Itan for initial training at a cost of $1,500 per person after the salon opens. It is important for prospective franchisees to maintain compliance with the franchise agreement and manual to avoid such penalties and ensure smooth operations.