What requirements must a non-approved supplier meet to be considered by Itan?

According to Itan's 2025 Franchise Disclosure Document, if a franchisee wishes to purchase or lease a source-restricted item from a supplier not already approved by Itan, they must first seek approval from Itan. This process involves several steps to ensure the supplier meets Itan's standards.

Specifically, the franchisee must submit a written request for approval to Itan, along with product samples for testing. Additionally, the franchisee must provide any other information requested by Itan to aid in the evaluation process. The potential supplier must also agree to comply with Itan's minimum requirements for insurance, indemnification, and confidentiality, which are in place for all system suppliers. Furthermore, the supplier must allow Itan to periodically inspect their facility to ensure ongoing compliance with Itan's standards.

Itan may also require the non-approved supplier to sign a license agreement if their products will display Itan's trademarks or branding. Itan will then notify the franchisee of their decision regarding the supplier's approval within 30 days of receiving all necessary information and product samples. Even if a supplier is initially approved, Itan retains the right to periodically reinspect both the products and the supplier to ensure they continue to meet Itan's current criteria. If a product or supplier fails to meet these standards at any point, Itan can revoke the approval. The franchisee is responsible for reimbursing Itan for all costs incurred during the evaluation of the proposed supplier and their products.

This process ensures that Itan maintains control over the quality and consistency of products and services used within its franchise system, which is a common practice in franchising. While this protects the brand, it also means the franchisee bears the cost and administrative burden of seeking alternative suppliers.