How will Itan notify franchisees of changes to specifications and suppliers?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 8: RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES]
Source-Restricted Purchases and Leases - Generally
You must purchase or lease certain source-restricted goods and services for the development and operation of your Salon. "Source-restricted" means the good or service must meet our specifications or must be purchased from an approved or designated supplier (in some cases, an exclusive designated supplier, which may be us or
an affiliate). The Manual includes our specifications and supplier list. We notify you of changes to our specifications and suppliers by email, updates to the Manual or other means of communication.
Supplier Criteria
Our criteria for evaluating suppliers include standards for: (a) quality, performance, design, appearance and price of the product or service; and (b) dependability, production capabilities, reputation and financial strength of the supplier. Upon request, we will provide you with any objective specifications pertaining to our evaluation of a supplier or product, although certain important subjective criteria (e.g., product appearance, design, functionality, etc.) are important to our evaluation but cannot be described in writing.
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.
Current Source-Restricted Purchases and Leases
We estimate nearly 95% of the total purchases and leases to establish your Salon and 85% of ongoing operating expenses will consist of source-restricted goods or services, as further described below.
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, Itan will inform franchisees of any changes to the brand's specifications and list of approved suppliers via email, updates to the Manual, or other means of communication. This is important for franchisees because they are required to purchase or lease certain source-restricted goods and services that meet Itan's standards from approved or designated suppliers. Source-restricted items account for approximately 95% of the total purchases and leases to establish a Salon and 85% of ongoing operating expenses.
Itan's criteria for evaluating suppliers include standards for the quality, performance, design, appearance, and price of the product or service, as well as the dependability, production capabilities, reputation, and financial strength of the supplier. If a franchisee wants to use a non-approved supplier, they must submit a written request for approval, product samples for testing, and any additional information Itan requests. The supplier must also agree to comply with Itan's minimum insurance, indemnification, and confidentiality requirements and allow Itan to periodically inspect their facility.
Itan will notify the franchisee of its decision regarding the proposed supplier within 30 days after receiving all required information and product samples. Itan may also periodically reinspect approved products and suppliers and revoke approval if they no longer meet the current criteria. The franchisee is responsible for reimbursing Itan for all costs incurred in evaluating the proposed products and suppliers. This process ensures that Itan maintains control over the quality and consistency of products and services used in its salons, but it also places the burden of cost for evaluation on the franchisee.