Can Itan purchase items in bulk and resell them to franchisees, and if so, at what price?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We attempt to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees. As of the date of this Disclosure Document, we have negotiated purchase agreements (including pricing terms) with suppliers for FIT Bodywraps®, tanning lamps, teeth whitening trays and take-home whitening pens. We may also purchase items in bulk and resell them to you at our cost plus a reasonable markup. Currently there are no purchasing cooperatives but we may establish them in the future. You do not receive any material benefits for using designated or approved suppliers other than having access to any discounted pricing we negotiate.
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 may purchase items in bulk and resell them to franchisees. The price at which Itan resells these items is their cost plus a reasonable markup. This arrangement gives Itan some control over the supply chain and potentially allows franchisees to benefit from bulk purchasing discounts negotiated by the franchisor.
Itan also attempts to negotiate purchase agreements with suppliers, including favorable pricing terms, for the benefit of franchisees. As of the date of the Disclosure Document, Itan has negotiated purchase agreements (including pricing terms) with suppliers for FIT Bodywraps®, tanning lamps, teeth whitening trays and take-home whitening pens.
Prospective franchisees should inquire about the specific items Itan intends to purchase in bulk, the typical markup applied, and how these prices compare to other potential suppliers. Understanding the cost structure and potential savings is crucial for assessing the financial viability of the franchise. Franchisees are not obligated to use designated or approved suppliers other than having access to any discounted pricing Itan negotiates.