factual

What are some examples of 'Alternative Channels of Distribution' that Itan defines?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

  • "Alternative Channels of Distribution" means any channel of distribution other than retail sales made to customers while present at a Salon, including, but not limited to: (a) sales through direct marketing, such as over the Internet or through catalogs or telemarketing; (b) sales through retail stores that do not operate under the Marks, such as grocery stores, convenience stores, spas and tanning salons (other than spas or tanning salons operating under the Marks); and (c) sales made at wholesale.

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, 'Alternative Channels of Distribution' refers to methods of selling goods and services outside of the traditional in-salon retail setting. For a prospective franchisee, this means Itan retains the right to explore various avenues for sales that may or may not directly involve the franchisee's location.

Itan defines 'Alternative Channels of Distribution' as any channel other than retail sales to customers physically present at a Salon. Examples of these alternative channels include direct marketing approaches such as internet sales, catalogs, and telemarketing. It also encompasses sales through retail stores not branded as Itan, such as grocery stores, convenience stores, spas, and tanning salons that are not part of the Itan franchise system.

Furthermore, Itan includes wholesale sales as another form of 'Alternative Channels of Distribution'. This means Itan could potentially sell its products in bulk to other businesses, who would then resell them to consumers. For a franchisee, this could present both opportunities and challenges. It could increase brand awareness and overall sales volume, but it might also create competition for the franchisee's own retail sales. Franchisees should discuss with Itan the degree to which these alternative channels may impact their business.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.