What must an Itan franchisee do if they wish to purchase alternative goods or services or from an alternative supplier?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
We need not consider substitute goods or alternative suppliers for goods that are proprietary or branded with our Marks.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a franchisee wants to purchase alternative goods or services, or use an alternative supplier, they must first seek approval from Itan. The franchisee needs to submit a request that includes: 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 require the supplier to comply with minimum insurance, indemnification, and confidentiality requirements. Itan has 120 days to approve or disapprove the request after receiving all the necessary information and samples. If Itan fails to respond within this 120-day period, the request is considered disapproved. The franchisee is responsible for reimbursing Itan for all costs incurred during the review of the proposed suppliers or goods/services.
Itan need not consider substitute goods or alternative suppliers for goods that are proprietary or branded with Itan's Marks. This approval process allows Itan to maintain uniformity and quality across its franchise locations, protect trade secrets, negotiate bulk purchase discounts, and safeguard the brand's reputation and goodwill.