For Itan franchises, what operating equipment must be purchased exclusively from FDTC?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase certain operating equipment that meets our standards and specifications, including tanning beds, spa equipment, bodywraps and various other equipment. Certain operating equipment must be purchased from approved or designated suppliers while other operating equipment may be purchased from any supplier of your choosing. You must purchase FIT Bodywrap® exclusively from FDTC.
Franchisor Revenue from Source-Restricted Purchases
We do not currently serve as an approved or designated supplier, but we may do so in the future. Our affiliate, FDTC, is the exclusive supplier for FIT Bodywraps®. Our affiliate, Evolv, is the exclusive supplier for all 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. FDTC and Evolv may also sell these products to the public and other retailers through other channels of distribution, although iTAN franchisees enjoy discounted pricing not generally available to other purchasers of these products. We may designate ourselves and our affiliates as approved or designated suppliers for other goods and services in the future.
During the fiscal year ended December 31, 2024: (a) FDTC generated $41,372.45 in revenue as a result of franchisee purchases or leases; and (b) Evolv generated $101,947.43 in revenue as a result of franchisee purchases or leases.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 18–21)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must purchase FIT Bodywrap® systems exclusively from FDTC. FDTC is identified as an affiliate of Itan. This means that Itan franchisees do not have a choice in supplier for this particular piece of equipment and must purchase it directly from the franchisor's affiliate.
This requirement has several implications for prospective franchisees. First, it reduces the franchisee's ability to negotiate pricing or seek out alternative suppliers for FIT Bodywrap® systems. Second, because FDTC is an affiliate of Itan, the franchisor benefits directly from these required purchases. The FDD notes that during the fiscal year ended December 31, 2024, FDTC generated $41,372.45 in revenue as a result of franchisee purchases or leases. This arrangement is common in franchising, where franchisors often designate specific suppliers to maintain quality control and brand consistency.
It is important for prospective Itan franchisees to consider the potential costs and benefits of this exclusive purchasing requirement. While it may limit their flexibility, it could also ensure access to high-quality equipment that meets Itan's standards. Additionally, the FDD states that Itan attempts to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees. Franchisees should inquire about these negotiated terms and compare them to market prices to assess the competitiveness of FDTC's pricing for FIT Bodywrap® systems. They should also consider that Itan may designate themselves or their affiliates as approved or designated suppliers for other goods and services in the future.