Is FDTC an affiliate of Itan, and what products is it the exclusive supplier for?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
roved 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.
As of the issuance date of this Disclosure Document, we do not have any relationships with suppliers that involve rebates, payments or other material benefits based upon franchisee purchase or leases. However, we may establish these relationships in the future. If we receive rebates from suppliers based on franchisee purchases, we will either: (a) pass these amounts through to each Salon that purchased from the supplier in proportion to that Salon's total purchases as compared to all other Salons' total purchases; or (b) deposit these amounts into the Brand Fund.
Our total revenue during the fiscal year ended December 31, 2024 was $908,351. During that year, we generated $32,676 in revenue as a result of franchisee purchases or leases (consisting of technology fees and EFT service fees), which represents 3.6% of our total revenue for the year.
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, FDTC is an affiliate of Itan and serves as the exclusive supplier for FIT Bodywraps®. Another affiliate, Evolv, is the exclusive supplier for TANOLOGY® and BRONZE LUMINESSENCE™ skincare products and CALIFORNIA SPA® Ageless Serum, along with certain branded supplies like name tags, bed tents, iTAN tote bags, and key tags. Itan's Chief Executive Officer has an ownership interest in Itan, FDTC, and Evolv.
Itan franchisees benefit from discounted pricing on products from FDTC and Evolv, which are not generally available to other purchasers. This arrangement allows Itan and its affiliates to generate revenue from franchisee purchases. In the fiscal year ending December 31, 2024, FDTC generated $41,372.45 in revenue from franchisee purchases or leases, while Evolv generated $101,947.43.
Itan estimates that nearly 95% of the total purchases and leases to establish a Salon and 85% of ongoing operating expenses will consist of source-restricted goods or services. Franchisees are required to purchase FIT Bodywrap® exclusively from FDTC. All inventory must meet Itan's standards and specifications and be purchased from approved or designated suppliers. Franchisees may not utilize or sell any inventory items Itan has not approved.
Prospective franchisees should be aware of these source restrictions and the potential costs associated with purchasing from designated suppliers. It is important to consider the impact of these requirements on the overall profitability of the franchise. Franchisees have the option to request approval for non-approved suppliers, but this process involves providing product samples, additional information, and ensuring the supplier meets Itan's insurance, indemnification, and confidentiality requirements.