Is an Itan Salon operated under a valid franchise agreement considered a 'Competing Business'?

According to Itan's 2025 Franchise Disclosure Document, a salon operated under a valid franchise agreement with Itan or its affiliates is explicitly excluded from being considered a 'Competing Business'. This definition is crucial for franchisees as it clarifies the scope of activities they are restricted from engaging in, particularly concerning competitive businesses.

The FDD defines 'Competing Business' broadly, encompassing businesses that derive a significant portion (at least 50%) of their revenue from tanning services, tanning products, or similar spa services offered at an Itan Salon. It also includes businesses that franchise or license such competing businesses, or those that provide support or consulting to them. However, the key takeaway is that an Itan franchisee operating under a valid agreement is not considered a competitor.

This exclusion provides clarity and reassurance to Itan franchisees, ensuring that their own franchised Itan Salon will not be viewed as a competitive threat under the terms of the franchise agreement. This distinction is important when considering potential conflicts of interest or restrictions on business activities, especially if a franchisee has other business ventures or investments.