Does the definition of 'Competing Business' for Itan include businesses that solicit franchises for tanning services?

According to Itan's 2025 Franchise Disclosure Document, the definition of a 'Competing Business' does include businesses that solicit, offer, or sell franchises or licenses for a business that generates at least 50% of its revenue from tanning services, tanning products, and/or services similar to those offered at an Itan Salon. These services include infrared body wraps, aqua massage, teeth whitening, salt therapy, or photo light therapy.

This definition is important for prospective franchisees because it outlines the types of businesses that Itan considers to be in competition with its franchise. This could impact a franchisee's ability to own or be involved with other businesses, especially during and after the franchise agreement term, due to non-compete clauses that are typically included in franchise agreements.

However, the definition of 'Competing Business' does not include a salon operated under a valid franchise or license agreement with Itan or its affiliates. This clarifies that franchisees within the Itan system are not considered competitors to each other under this definition. This distinction is common in franchising, as the franchisor wants to prevent unfair competition from outside businesses while allowing its own franchisees to operate without being considered competitors within the system.