How long does Itan have to notify a franchisee of its decision regarding a non-approved supplier?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
If you wish to purchase or lease a source-restricted item from a non-approved supplier, you must send us: (a) a written request for approval; (b) product samples for testing purposes; and (c) all additional information we request. The supplier must agree to comply with our minimum insurance, indemnification and confidentiality requirements for system suppliers and allow us to periodically inspect their facility. We may also require that the supplier sign a license agreement with us if the products will bear our Marks. We will notify you of our decision within 30 days after we receive all required information and product samples. We may periodically reinspect approved products and suppliers and revoke our approval if a product or supplier fails to meet our then-current criteria. You must reimburse all costs we incur to evaluate products and suppliers you propose.
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, if a franchisee wants to purchase or lease a source-restricted item from a supplier that is not already approved by Itan, the franchisee must submit a written request for approval, product samples for testing, and any additional information requested by Itan. The supplier must also agree to comply with Itan's minimum insurance, indemnification, and confidentiality requirements and allow Itan to inspect their facility periodically. Additionally, Itan may require the supplier to sign a license agreement if the products will bear Itan's Marks.
Itan will then notify the franchisee of its decision regarding the non-approved supplier within 30 days. This 30-day period starts after Itan receives all the required information and product samples from the franchisee.
It is important to note that Itan may periodically reinspect approved products and suppliers and can revoke approval if a product or supplier fails to meet Itan's current criteria. The franchisee is responsible for reimbursing Itan for all costs incurred during the evaluation of the proposed products and suppliers. This process ensures that Itan maintains control over the quality and standards of products used in its franchise system, while also allowing franchisees the opportunity to propose alternative suppliers.