What is the Itan franchisee encouraged to consult in California?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
ATTACHMENT "F"
TO FRANCHISE AGREEMENT
BRAND PROTECTION AGREEMENT
[See Attached]
BRAND PROTECTION AGREEMENT
This Agreement (this "Agreement") is entered into by the undersigned ("you") in favor of iTAN Franchising, Inc., a California corporation and its successors and assigns ("us") upon the terms set forth below.
- **1.
DEFINITIONS.** Capitalized terms that are not defined above have the meanings given to them below:
"Business Data" means all data pertaining to Franchisee's Salon, customers and business operations, whether collected by you, Franchisee, us or any other person.
"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, a franchisee in California is encouraged to consult Attachment "F" to the Franchise Agreement, which is the Brand Protection Agreement. This agreement outlines the terms and conditions that the franchisee must adhere to in order to protect the Itan brand.
The Brand Protection Agreement defines key terms such as "Business Data" and "Competing Business." Business Data encompasses all data related to the franchisee's salon, customers, and business operations. A Competing Business is defined as any business that generates a significant portion of its revenue from tanning services, tanning products, or similar spa services, or any business that franchises or supports such businesses. Understanding these definitions is crucial for franchisees to avoid any actions that could be construed as a breach of the agreement.
This agreement aims to prevent franchisees from engaging in activities that could harm the Itan brand or compete unfairly with the franchisor or other franchisees. By adhering to the Brand Protection Agreement, franchisees contribute to maintaining the integrity and reputation of the Itan brand, which benefits the entire franchise system. Franchisees should carefully review this agreement with legal counsel to fully understand their obligations and rights.