Does the Itan definition of 'Competing Business' include businesses that offer services similar to spa services offered at a Salon?

According to Itan's 2025 Franchise Disclosure Document, a 'Competing Business' is defined, in part, as any business that generates, or could reasonably be expected to generate, at least 50% of its revenue from the sale of tanning services, tanning products, and/or services similar to the spa services offered at an Itan Salon. These spa services include, but are not limited to, infrared body wraps, aqua massage, teeth whitening, salt therapy, or photo light therapy. This definition is relevant to the Brand Protection Agreement that Itan requires certain personnel to sign.

This definition has significant implications for prospective franchisees and their employees. It restricts their ability to engage with other businesses that offer similar services, even after they leave the Itan franchise. The restriction applies if the business derives a substantial portion (at least 50%) of its revenue from these services. This could limit future employment or business opportunities within the tanning and spa services industry.

It is important to note that the definition of 'Competing Business' does not include a Salon operated under a valid franchise or license agreement with Itan or its affiliates. This exception allows franchisees to operate multiple Itan locations without violating the Brand Protection Agreement. However, any business outside the Itan franchise system that offers similar services and generates a significant portion of its revenue from them would be considered a 'Competing Business'.