According to Itan's 2025 Franchise Disclosure Document, franchisees may face competition from various sources. Specifically, Itan franchisees may encounter competition from other franchisees, outlets that Itan owns, alternative channels of distribution that Itan controls, and competitive brands that Itan controls. This means that even within a franchisee's designated territory, Itan retains the right to operate or license others to operate similar businesses, potentially impacting the franchisee's market share and revenue.

Itan reserves the right to sell competitive or identical goods and services through alternative channels of distribution, which include sales through direct marketing (like the internet, catalogs, or telemarketing), retail stores not operating under Itan's marks (such as grocery stores, convenience stores, spas, and tanning salons), and wholesale sales. Itan franchisees are not entitled to any compensation for sales that occur through these alternative channels, which could reduce their potential earnings.

Furthermore, Itan retains the right to acquire other businesses, even those that are competitive or offer identical services. These acquired businesses can be converted into Itan salons, regardless of their location, including within a franchisee's territory or development territory. This introduces the risk of direct competition from businesses that Itan acquires and integrates into its franchise system. Prospective franchisees should carefully consider these competitive factors and their potential impact on their business's performance and profitability.