Can Itan require a franchisee to purchase items within the Startup Package from designated third-party suppliers?

According to Itan's 2025 Franchise Disclosure Document, Itan has the right to require franchisees to purchase some or all of the items within the Startup Package from designated third-party suppliers. This means that while franchisees typically purchase the Startup Package from Itan's affiliates, Itan retains the option to direct franchisees to specific external suppliers for these items.

The Startup Package is a mandatory purchase, with the franchisee required to buy it approximately 14 days before their anticipated opening date. The package includes items such as a FIT Bodywrap®, TANOLOGY® skincare products, BRONZE LUMINESSENCE™ lotion, CALIFORNIA SPA® Ageless Serum, and branded supplies. The total cost of the Startup Package ranges from $4,654 to $4,704.

This provision gives Itan flexibility in managing its supply chain and potentially negotiating better deals with various suppliers. However, it also means that franchisees may not have a choice in where they source these essential startup items, potentially impacting costs or supplier relationships. Prospective franchisees should inquire about the circumstances under which Itan might exercise this option and whether there are any limitations or guidelines in place.