Does Itan consider subjective criteria when evaluating suppliers?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Our criteria for evaluating suppliers include standards for: (a) quality, performance, design, appearance and price of the product or service; and (b) dependability, production capabilities, reputation and financial strength of the supplier. Upon request, we will provide you with any objective specifications pertaining to our evaluation of a supplier or product, although certain important subjective criteria (e.g., product appearance, design, functionality, etc.) are important to our evaluation but cannot be described in writing.
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, Itan does consider subjective criteria when evaluating suppliers. While Itan will provide objective specifications upon request, the FDD specifies that certain subjective criteria are important to their evaluation but cannot be described in writing. These include aspects such as product appearance, design, and functionality.
This means that even if a potential supplier meets all the objective criteria set by Itan, their products may still be rejected based on these subjective factors. This gives Itan a degree of discretion in choosing suppliers, which could impact franchisees if their preferred suppliers are not approved due to subjective reasons.
Prospective Itan franchisees should be aware that they may not have complete insight into all the factors that influence supplier approval. While objective criteria can be requested, the subjective elements remain at Itan's discretion. Franchisees who wish to use a non-approved supplier must submit a written request, product samples, and any additional information requested by Itan, and also bear the costs of evaluation.