For Itan franchises, what must franchisees do regarding the purchase, lease, or license of goods, services, and other items required by the Manual?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
11.7. Suppliers and Purchasing.
- (a) Generally.
You must purchase, lease or license, as applicable, all goods, services and other items required by the Manual.
You must only purchase goods and services that satisfy all standards and specifications we designate.
You must comply with all sourcing and supplier restrictions we impose from time to time.
- (b) System Suppliers.
In accordance with the Manual, you must purchase certain goods and services exclusively from suppliers we designate or approve.
The Manual may designate us or our affiliate as a designated or approved supplier.
We and our affiliates may generate a profit from these purchases.
Our affiliates are currently the exclusive designated suppliers for FIT Bodywraps®, TANOLOGY® and BRONZE LUMINESSENCE™ skincare products and CALIFORNIA SPA® Ageless Serum, as well as certain branded supplies, such as name tags, bed tents, iTAN tote bags and key tags.
Our right to specify the suppliers you use is necessary so we can control the uniformity and quality of goods and services used, sold or distributed in connection with the development and operation of Salons, protect our trade secrets, negotiate bulk purchase discounts and protect the reputation and goodwill associated with our System and Marks.
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, franchisees must purchase, lease, or license all goods, services, and other items required by the brand standards manual (the Manual). These goods and services must meet Itan's designated standards and specifications, and franchisees must adhere to any sourcing or supplier restrictions imposed by Itan.
Itan franchisees are required to purchase certain goods and services exclusively from suppliers designated or approved by Itan, which may include Itan itself or its affiliates. Itan and its affiliates may profit from these purchases. Currently, Itan's affiliates are the exclusive designated suppliers for specific skincare products like FIT Bodywraps®, TANOLOGY®, BRONZE LUMINESSENCE™, and CALIFORNIA SPA® Ageless Serum, as well as branded supplies such as name tags, bed tents, iTAN tote bags, and key tags.
If a franchisee wishes to purchase alternative goods or services or use a different supplier, they must request approval from Itan. This request must include detailed information about the proposed supplier and goods/services, including the supplier's qualifications, reputation, financial strength, and production capabilities, as well as product samples. 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 required information and samples; failure to respond within this period means the request is deemed disapproved. The franchisee must also reimburse Itan for all costs incurred in reviewing the proposed suppliers or goods/services.
Itan's right to specify suppliers is intended to control the uniformity and quality of goods and services used in the salons, protect trade secrets, negotiate bulk purchase discounts, and safeguard the reputation and goodwill associated with the Itan system and marks. Franchisees must immediately stop purchasing from any supplier that Itan disapproves.