Does Itan currently have any purchasing cooperatives for franchisees?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We attempt to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees. As of the date of this Disclosure Document, we have negotiated purchase agreements (including pricing terms) with suppliers for FIT Bodywraps®, tanning lamps, teeth whitening trays and take-home whitening pens. We may also purchase items in bulk and resell them to you at our cost plus a reasonable markup. Currently there are no purchasing cooperatives but we may establish them in the future. You do not receive any material benefits for using designated or approved suppliers other than having access to any discounted pricing we negotiate.
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 not currently have any purchasing cooperatives for franchisees. However, Itan may establish them in the future. Itan attempts to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees. As of the date of the 2025 Disclosure Document, Itan has negotiated purchase agreements (including pricing terms) with suppliers for FIT Bodywraps®, tanning lamps, teeth whitening trays, and take-home whitening pens. Itan may also purchase items in bulk and resell them to franchisees at their cost plus a reasonable markup.
Itan estimates that nearly 95% of the total purchases and leases to establish a Salon and 85% of ongoing operating expenses will consist of source-restricted goods or services. This means franchisees are required to purchase or lease certain goods and services from approved or designated suppliers. These source-restricted items include fixtures, furnishings, décor, equipment, technology systems, signage, and inventory.
For inventory, franchisees must purchase TANOLOGY® and BRONZE LUMINESSENCE™ skincare products and CALIFORNIA SPA® Ageless Serum exclusively from Itan's affiliates. Franchisees are also required to contract with the supplier of payroll services that Itan designates and a bookkeeping supplier that Itan designates or approves. All marketing materials must comply with Itan's brand standards, and franchisees must purchase branded marketing materials only from Itan or other suppliers they designate or approve.