Does the Itan definition of 'Competing Business' include businesses that train people with respect to the development, management and/or operation of a business that meets the criteria in clause (a) of the definition?

According to Itan's 2025 Franchise Disclosure Document, the definition of a 'Competing Business' does include businesses that train, support, consult with, advise, or otherwise assist any person with respect to the development, management, and/or operation of a business that meets the criteria in clause (a) of the definition. Clause (a) refers to 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 infrared body wraps, aqua massage, teeth whitening, salt therapy, or photo light therapy.

This definition is important for prospective franchisees because it outlines the scope of activities that Itan considers competitive and could potentially restrict a franchisee's involvement in other businesses, especially after the franchise agreement ends. It is important to note that a Competing Business does not include a Salon operated pursuant to a valid franchise agreement or license agreement with Itan or its affiliate.

This broad definition means that franchisees and their personnel are restricted from being involved with businesses that not only directly compete with Itan's services but also those that provide training or support to such competing businesses. This restriction is designed to protect Itan's business model and market position by preventing franchisees from using their knowledge and experience gained from Itan to benefit competing ventures, even indirectly. Franchisees should carefully consider this definition and its implications for any current or future business interests they may have.