Does Itan's Chief Executive Officer own an interest in FDTC and Evolv?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Our affiliate, FDTC, is the exclusive supplier for FIT Bodywraps®. Our affiliate, Evolv, is the exclusive supplier for all TANOLOGY® and BRONZE LUMINESSENCE™ skincare products and CALIFORNIA SPA® Ageless Serum, as well as certain branded supplies, such as name tags, bed tents, iTAN tote bags and key tags. FDTC and Evolv may also sell these products to the public and other retailers through other channels of distribution, although iTAN franchisees enjoy discounted pricing not generally available to other purchasers of these products. We may designate ourselves and our affiliates as approved or designated suppliers for other goods and services in the future. We and our affiliates may generate a profit from these purchases. Except for FDTC and Evolv, no person affiliated with us is currently an approved (or the only approved) supplier. Our Chief Executive Officer owns an interest in us (the franchisor) as well as FDTC and Evolv. There are no other approved or designated suppliers in which any of our officers own an interest.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the Chief Executive Officer does have ownership in both FDTC and Evolv. FDTC is the exclusive supplier for FIT Bodywraps®, while Evolv is the exclusive supplier for TANOLOGY® and BRONZE LUMINESSENCE™ skincare products and CALIFORNIA SPA® Ageless Serum, along with certain branded supplies.
This arrangement means that Itan franchisees are required to purchase these specific products from companies in which the franchisor's CEO has a financial stake. While the FDD states that iTAN franchisees receive discounted pricing not generally available to other purchasers of these products, it's important for prospective franchisees to understand this relationship and how it could potentially impact their costs and sourcing options.
It's also worth noting that the franchisor and its affiliates may generate a profit from these purchases. This type of arrangement, where a franchisor or its affiliates benefit financially from required purchases, is not uncommon in franchising. However, prospective franchisees should carefully evaluate whether the pricing and quality of the products offered by FDTC and Evolv are competitive and reasonable. They should also consider whether the requirement to purchase from these specific suppliers limits their ability to negotiate better deals or source alternative products.
Prospective Itan franchisees should seek clarification from the franchisor regarding the extent of the CEO's ownership in FDTC and Evolv, the specific pricing arrangements for franchisees, and the process for evaluating and approving new suppliers. Understanding these details will help franchisees make informed decisions about their investment and ongoing operational costs.