Does the Itan definition of 'Competing Business' include other Itan franchises?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Competing Business" means any business that meets at least one of the following criteria: (a) 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 a Salon (including infrared body wraps, aqua massage, teeth whitening, salt therapy or photo light therapy); (b) any business that solicits, offers or sells franchises or licenses for a business that meets the criteria in clause (a) of this definition; and/or (c) any business that services, trains, supports, consults with, advises or otherwise assists any Person with respect to the development, management and/or operation of a business that meets the criteria in clause (a) of this definition.
A Competing Business does not include a Salon operated pursuant to a valid franchise agreement or license agreement with us or our affiliate.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the definition of a 'Competing Business' specifically excludes other Itan franchises. The document defines a 'Competing Business' as any business that generates a significant portion of its revenue (at least 50%) from tanning services, tanning products, or similar spa services. It also includes businesses that offer or sell franchises for such businesses, or those that support the development and operation of such businesses.
However, the definition explicitly states that a 'Competing Business' does not include a Salon operated under a valid franchise or license agreement with Itan or its affiliates. This means that franchisees are generally not restricted from owning or being involved with other Itan franchises.
This exclusion provides Itan franchisees with the potential opportunity to expand their business within the Itan system without being considered a competitive threat. However, franchisees should still carefully review the franchise agreement to understand any other restrictions that may apply, such as those related to territory or operational standards.