Must an Itan franchisee obtain approval for all goods and services they intend to sell?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We must approve all goods and services you sell. You must offer all goods and services we require. You may not sell any goods or services we have disapproved. You must strictly abide by our approved menu and menus system. You must present the menu offerings in the manner we designate. At any time, we may change the goods and services you sell and you must comply with the change. We may require you to participate in a gift card or other customer loyalty program (including utilization of a "membership" model) in accordance with our policies and procedures.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 36)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must obtain approval from Itan for all goods and services they intend to sell. The franchisee is required to offer all goods and services that Itan mandates and is prohibited from selling any goods or services that Itan has disapproved. Itan maintains strict control over the menu and menu system, and franchisees must present menu offerings in the manner designated by Itan.
Itan retains the right to change the goods and services offered at any time, and franchisees must comply with these changes. This gives Itan significant control over the products and services offered at each location, ensuring brand consistency and adherence to Itan's strategic direction.
This requirement ensures uniformity across all Itan franchise locations, which can be beneficial for brand recognition and customer expectations. However, it also limits the franchisee's autonomy and ability to cater to local market demands or introduce innovative offerings without prior approval from Itan. Prospective franchisees should consider this restriction and its potential impact on their business operations and revenue generation.