Does Itan provide a guarantee regarding the quality or delivery of goods from approved suppliers?

According to Itan's 2025 Franchise Disclosure Document, Itan does not assume liability for the actions, errors, or omissions of designated or approved system suppliers, provided that Itan designates or approves these suppliers in good faith. This includes issues such as defective or tainted goods, delayed delivery, or the supplier's inability to meet demand.

For goods purchased directly from Itan or its affiliates, the document clarifies that Itan or its affiliate acts as a reseller, purchasing goods from third-party manufacturers or suppliers as a convenience to the franchisee. Therefore, Itan franchisees acknowledge that if they have any claims related to the purchase of goods or services from a system supplier, their sole recourse is against that supplier, not Itan.

This disclaimer of liability has significant implications for prospective Itan franchisees. It means that franchisees bear the risk of dealing with supplier-related issues and must resolve any disputes directly with the suppliers. While Itan may offer assistance by designating or approving suppliers, it does not guarantee the quality, timeliness, or availability of the goods and services provided by those suppliers. Franchisees should carefully evaluate the reputation and reliability of approved suppliers and consider implementing their own quality control measures to mitigate these risks.