Are supplier lists and information considered 'Know-how' for an Itan franchise?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Know-how" means and includes our (and our affiliates') trade secrets and other proprietary information relating to the design, construction, development, marketing or operation of a Salon including, but not limited to: architectural plans, drawings and specifications for a prototype Salon; site selection criteria; menu systems; methods and techniques; standards and specifications; policies and procedures; supplier lists and information; marketing strategies; merchandising strategies; financial information; and information
comprising the System or included in the Manual.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, supplier lists and information are explicitly considered part of the 'Know-how' of the franchise. This 'Know-how' encompasses trade secrets and proprietary information related to the design, construction, development, marketing, and operation of an Itan Salon.
For a prospective franchisee, this means that the supplier lists and related information provided by Itan are confidential and proprietary. Franchisees are expected to maintain the confidentiality of this information and use it solely for the operation of their Itan salon. This obligation is reinforced by a confidentiality agreement that employees or independent contractors of the franchisee must also adhere to.
The FDD specifies that 'Know-how' includes a range of elements such as architectural plans, site selection criteria, menu systems, methods, techniques, standards, specifications, policies, procedures, marketing strategies, merchandising strategies, and financial information. The inclusion of supplier lists and information within this definition highlights their importance to the Itan system and the competitive advantage they provide. Unauthorized disclosure or misuse of this information could be detrimental to Itan and its franchisees.
It is also important to note that this 'Know-how', including supplier information, is part of Itan's Intellectual Property. As such, franchisees and their employees are prohibited from using this information in any business other than the operation of their Itan Salon. This restriction remains in effect even after an individual is no longer associated with the Itan franchise.