What may Itan condition its approval of an alternative supplier on?

According to Itan's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase from an alternative supplier, Itan may condition its approval on the supplier's agreement to comply with Itan's minimum insurance, indemnification, and confidentiality requirements for system suppliers.

This means that if a franchisee finds a supplier they prefer over Itan's designated suppliers, Itan has the right to ensure that the alternative supplier meets certain standards to protect the Itan system. These standards include minimum insurance coverage to protect against liability, indemnification to protect Itan from potential losses caused by the supplier, and confidentiality to safeguard Itan's trade secrets and other sensitive information.

This condition is in place to maintain uniformity and quality across the Itan franchise system, protect trade secrets, and uphold the reputation and goodwill associated with the Itan brand. By requiring alternative suppliers to meet these minimum requirements, Itan aims to ensure that all suppliers, whether designated or alternative, adhere to the same standards of operation and protection.

For a prospective franchisee, this means that finding a cheaper or otherwise preferable supplier does not guarantee approval. The franchisee must also ensure that the supplier is willing and able to meet Itan's insurance, indemnification, and confidentiality requirements, which could impact the supplier's pricing or willingness to work with the franchisee.