Does Itan currently have any relationships with suppliers that involve rebates, payments, or other material benefits based upon franchisee purchases or leases?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
nated suppliers in which any of our officers own an interest.
As of the issuance date of this Disclosure Document, we do not have any relationships with suppliers that involve rebates, payments or other material benefits based upon franchisee purchase or leases. However, we may establish these relationships in the future. If we receive rebates from suppliers based on franchisee purchases, we will either: (a) pass these amounts through to each Salon that purchased from the supplier in proportion to that Salon's total purchases as compared to all other Salons' total purchases; or (b) deposit these amounts into the Brand Fund.
Our total revenue during the fiscal year ended December 31, 2024 was $908,351. During that year, we generated $32,676 in revenue as a result of franchisee purchases or leases (consisting of technology fees and EFT service fees), which represents 3.6% of our total revenue for the year.
During the fiscal year ended December 31, 2024: (a) FDTC generated $41,372.45 in revenue as a result of franchisee purchases or leases; and (b) Evolv generated $101,947.43 in revenue as a result of franchisee purchases or leases. The source of this information is internal financial accounting maintained on QuickBooks.
ITEM 9 FRANCHISEE'S OBLIGATIONS
This table lists your principal obligations under the Franchise Agreement (FA), Area Development Agreement (ADA) and other agreements. It will help you find more detailed information about your obligations in these agreements and other items in this Disclosure Document.
| OBLIGATION | SECTIONS IN AGREEMENT | DISCLOSURE DOCUMENT ITEM |
|---|---|---|
| a. Site selection and acquisition/lease | FA: 7.1 & 7.2 ADA: 5.1 | Item 7 & Item 11 |
| b. Pre-opening purchases/leases | FA: 6.2, 7.3, 11.7 & 15.1 ADA: Not Applicable | Item 5, Item 7, Item 8 & Item 11 |
| c. Site development and other pre | FA: 7.3 & 7.4 | Item 6, Item 7 & Item 11 |
| opening requirements | ADA: 5.1 & 5.2 | |
| d. Initial and ongoing training | FA: 5 ADA: Not Applicable | Item 6 & Item 11 |
| e. Opening | FA: 7.4 ADA: 4 | Item 11 |
| f. Fees | FA: 4.2, 5.4, 5.5, 7.5, 8.4, 10, 11.7, 11.9, 11.11, 11.15, 11.16, 13, 16, 19.2 & 21.3 ADA: 5.3, 6 & 8.2 | Item 5 & Item 6 |
| g. Compliance with standards and | FA: 6.1, 7.1, 7.3, 10.3, 11 & 17.1 | Item 11 |
| policies/Operating Manual | ADA: 5.1 & 5.2 | |
| h. Trademarks and proprietary | FA: 17 | Item 13 & Item 14 |
| information | ADA: 2 | |
| OBLIGATION | SECTIONS IN AGREEMENT | DISCLOSURE DOCUMENT ITEM |
| ------------------------------------------------------------------------------------------------------------------------------------------ | ----------------------------------------------- | -------------------------- |
| i. |
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, as of the issuance date of the document, Itan does not have any relationships with suppliers that involve rebates, payments, or other material benefits based upon franchisee purchases or leases. However, Itan may establish these relationships in the future. If Itan receives rebates from suppliers based on franchisee purchases, they will either pass these amounts through to each Salon that purchased from the supplier in proportion to that Salon's total purchases as compared to all other Salons' total purchases, or deposit these amounts into the Brand Fund.
Itan's total revenue during the fiscal year ended December 31, 2024, was $908,351. During that year, Itan generated $32,676 in revenue as a result of franchisee purchases or leases (consisting of technology fees and EFT service fees), which represents 3.6% of their total revenue for the year. During the fiscal year ended December 31, 2024: (a) FDTC generated $41,372.45 in revenue as a result of franchisee purchases or leases; and (b) Evolv generated $101,947.43 in revenue as a result of franchisee purchases or leases.
Itan attempts to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees. As of the date of this 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. Currently there are no purchasing cooperatives but Itan may establish them in the future. Franchisees do not receive any material benefits for using designated or approved suppliers other than having access to any discounted pricing Itan negotiates.
Itan does not currently serve as an approved or designated supplier, but they may do so in the future. Itan's affiliate, FDTC, is the exclusive supplier for FIT Bodywraps®. Their 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. Itan may designate themselves and their affiliates as approved or designated suppliers for other goods and services in the future. Itan and their affiliates may generate a profit from these purchases. Except for FDTC and Evolv, no person affiliated with Itan is currently an approved (or the only approved) supplier. Itan's Chief Executive Officer owns an interest in Itan (the franchisor) as well as FDTC and Evolv. There are no other approved or designated suppliers in which any of their officers own an interest.