What does 'Business' refer to in the Itan franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
A. You currently own and operate a business (the "Current Business") from the premises located at the address listed in Part A of Attachment A to this Addendum (the "Premises").
B. The Current Business offers services that are similar to the services offered by an iTAN salon.
C. You desire to acquire an iTAN franchise for purposes of converting your Current Business to an iTAN Salon and we are willing to grant you the right and obligation to do so.
"Business Data" means all data pertaining to Franchisee's Salon, customers and business operations, whether collected by you, Franchisee, us or any other person.
"Competing Business" means any business that meets at least one of the following criteria: (a) any business that generates, or could reasonably be expected to generate, at least 50% of its revenue from the sale of: tanning services; tanning products; and/or services similar to the spa services offered at a Salon (including infrared body wraps, aqua massage, teeth whitening, salt therapy or photo light therapy); (b) any business that solicits, offers or sells franchises or licenses for a business that meets the criteria in clause (a) of this definition; and/or (c) any business that services, trains, supports, consults with, advises or otherwise assists any Person with respect to the development, management and/or operation of a business that meets the criteria in clause (a) of this definition.
A Competing Business does not include a Salon operated pursuant to a valid franchise agreement or license agreement with us or our affiliate.
- "Development Business" means the franchised business you conduct pursuant to this Agreement consisting of developing and opening Salons within the Development Territory.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, 'Business' can refer to multiple concepts depending on the context within the franchise agreement. For franchisees converting an existing business, 'Business' refers to the franchisee's current business that they operate from a specific location, offering services similar to those of an Itan salon. This is in the context of converting that existing business into an Itan franchise.
In the Brand Protection Agreement, 'Business Data' is defined as all data pertaining to the franchisee's salon, customers, and business operations. This includes data collected by the franchisee, Itan, or any other person. This definition is important for understanding the scope of data protection and confidentiality required under the franchise agreement.
Additionally, 'Competing Business' is defined as any business generating at least 50% of its revenue from tanning services/products or services similar to those offered at an Itan salon, including businesses that solicit or sell franchises for such businesses, or those that support or consult with businesses of that nature. However, a Salon operated under a valid Itan franchise agreement is excluded from being considered a Competing Business. This definition clarifies the restrictions on franchisees regarding involvement in competing ventures during and after the franchise term. In the context of area development, 'Development Business' means the franchised business the franchisee conducts to develop and open Itan Salons within a specific Development Territory.