What must an Itan franchisee do if Itan disapproves of a supplier?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You must immediately discontinue purchasing from any supplier we disapprove.
- (c) Approval Process.
If you wish to purchase alternative goods or services or you wish to purchase from an alternative supplier, you must send us a request for approval that: (i) identifies the proposed supplier and the goods/services to be purchased; (ii) includes all information we require about the goods/services and the supplier (including the supplier's qualifications, reputation, financial strength and production capabilities); and (iii) includes product samples for examination and testing purposes.
We may condition our approval on the supplier's agreement to comply with our minimum insurance, indemnification and confidentiality requirements for system suppliers.
We will approve or disapprove your request within 120 days after we receive all required information and samples.
Your request is deemed disapproved if we fail to issue our approval within the 120-day period.
You must reimburse all costs we incur to review suppliers or goods/services you propose.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if Itan disapproves of a supplier, the franchisee must immediately stop purchasing from that supplier. Itan has the right to specify the suppliers that franchisees use to maintain uniformity and quality of goods and services, protect trade secrets, negotiate bulk purchase discounts, and protect the reputation and goodwill associated with the Itan system and marks.
If an Itan franchisee wants to purchase from an alternative supplier, they must submit a request for approval. This request must include the identification of the proposed supplier and the goods/services, all required information about the goods/services and the supplier (including qualifications, reputation, financial strength, and production capabilities), and product samples for examination and testing. Itan may also require the supplier to comply with minimum insurance, indemnification, and confidentiality requirements.
Itan will approve or disapprove the request within 120 days after receiving all the necessary information and samples. If Itan fails to issue an approval within this 120-day period, the request is considered disapproved. The franchisee is also responsible for reimbursing Itan for all costs incurred during the review of the proposed suppliers or goods/services.