Can Itan designate itself or its affiliates as approved or designated suppliers for other goods and services in the future?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not currently serve as an approved or designated supplier, but we may do so in the future. Our affiliate, FDTC, is the exclusive supplier for FIT Bodywraps®. Our 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. We may designate ourselves and our affiliates as approved or designated suppliers for other goods and services in the future. We and our affiliates may generate a profit from these purchases. Except for FDTC and Evolv, no person affiliated with us is currently an approved (or the only approved) supplier. Our Chief Executive Officer owns an interest in us (the franchisor) as well as FDTC and Evolv. There are no other approved or designated suppliers in which any of our officers own an interest.
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, Itan retains the right to designate itself and its affiliates as approved or designated suppliers for other goods and services in the future. Currently, Itan's affiliate, FDTC, is the exclusive supplier for FIT Bodywraps®, and its affiliate, Evolv, is the exclusive supplier for TANOLOGY® and BRONZE LUMINESSENCE™ skincare products and CALIFORNIA SPA® Ageless Serum, along with certain branded supplies.
This means that as an Itan franchisee, you may be required to purchase additional goods and services from Itan or its affiliates in the future. While the FDD states that iTAN franchisees enjoy discounted pricing not generally available to other purchasers of these products, Itan and its affiliates may profit from these purchases. The Chief Executive Officer of Itan also owns an interest in FDTC and Evolv, creating a potential conflict of interest.
It is important to note that Itan estimates nearly 95% of the total purchases and leases to establish your Salon and 85% of ongoing operating expenses will consist of source-restricted goods or services. These source-restricted purchases include fixtures, furnishings, décor, equipment, technology systems, signage, inventory, payroll services, bookkeeping services, and marketing materials. Franchisees are generally required to purchase these items from approved or designated suppliers.
Prospective franchisees should carefully consider the implications of these purchasing restrictions and the potential for increased costs if Itan designates itself or its affiliates as the sole supplier for additional goods and services. It is advisable to discuss these potential changes with Itan and current franchisees to fully understand the financial impact.