If Itan negotiates discounted prices with suppliers, will franchisees be able to purchase goods or services directly from the supplier?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We may, but need not, negotiate purchase agreements with suppliers to obtain discounted prices for franchisees. We will arrange for you to be able to purchase the goods or services directly from the supplier at the discounted prices we negotiate (subject to any rebates the supplier pays to us). We or our affiliate may also purchase goods from suppliers in bulk and resell them to you at our cost plus shipping fees and a markup.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may negotiate purchase agreements with suppliers to obtain discounted prices for franchisees. If Itan does negotiate these agreements, it will arrange for franchisees to purchase the goods or services directly from the supplier at the discounted prices. These discounted prices are subject to any rebates the supplier pays to Itan.
Itan also has the option to purchase goods from suppliers in bulk and resell them to franchisees. In this case, Itan would resell the goods at its cost plus shipping fees and a markup.
This arrangement benefits Itan franchisees by potentially lowering their costs for goods and services necessary to operate their salons. However, franchisees should be aware that Itan is not obligated to negotiate these discounted prices or to purchase goods in bulk for resale.