obligation

In California, what is a prospective Itan franchisee encouraged to consult?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

[Item 23: RECEIPT]

ATTACHMENT "F"

TO FRANCHISE AGREEMENT

BRAND PROTECTION AGREEMENT

[See Attached]

BRAND PROTECTION AGREEMENT

This Agreement (this "Agreement") is entered into by the undersigned ("you") in favor of iTAN Franchising, Inc., a California corporation and its successors and assigns ("us") upon the terms set forth below.

  • **1.

DEFINITIONS.** Capitalized terms that are not defined above have the meanings given to them below:

  • "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.


[Item 23: RECEIPT]

ATTACHMENT "G"

TO FRANCHISE AGREEMENT

CONFIDENTIALITY AGREEMENT

[See Attached]

CONFIDENTIALITY AGREEMENT

This Agreement (this "Agreement") is entered into by the undersigned ("you") in favor of iTAN Franchising, Inc., a California corporation and its successors and assigns ("us").

  • **1.

DEFINITIONS**.

Capitalized terms that are not defined above have the meanings given to them below:

  • "Business Data" means all data pertaining to Franchisee's Salon, customers and business operations, whether collected by you, Franchisee, us or any other person.

  • "Confidential Information" means and includes: (a) Know-How; (b) Business Data; (c) information in the Manual or comprising the System; (d) terms of the Franchise Agreement (and related agreements) signed by Franchisee in connection with the Salon; and (e) all other concepts, ideas, trade secrets, financial information, marketing strategies, expansion strategies, studies, supplier information, customer information, franchisee information, investor information, flow charts, inventions, mask works, improvements, discoveries, standards, specifications, formulae, recipes, designs, sketches, drawings, policies, processes, procedures, methodologies and techniques, together with analyses, compilations, studies or other documents that are: (i) designated as confidential; (ii) known by you to be considered confidential by us; and/or (iii) reasonably to be considered confidential due to their nature.

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

Based on the 2025 Itan Franchise Disclosure Document, prospective franchisees in California are encouraged to consult Attachment "F" to the Franchise Agreement, which is the Brand Protection Agreement, and Attachment "G" to the Franchise Agreement, the Confidentiality Agreement. These agreements outline the terms and conditions related to protecting the Itan brand and maintaining confidentiality.

The Brand Protection Agreement defines terms such as "Business Data" and "Competing Business," setting the parameters for what constitutes a competitive threat and how franchisee data is handled. The Confidentiality Agreement defines "Business Data" and "Confidential Information," including know-how, manual information, and financial and marketing strategies, ensuring franchisees understand their obligations regarding proprietary information.

These agreements are crucial for franchisees as they clarify the scope of their responsibilities in safeguarding Itan's brand integrity and confidential information. Understanding these agreements helps franchisees avoid actions that could be detrimental to the brand or expose them to legal repercussions. Franchisees should carefully review these attachments with legal counsel to fully grasp their implications and ensure compliance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.