According to the Itan FDD, what are the included matters pertaining to a 'Dispute'?

According to the 2025 Itan FDD, a 'Dispute' encompasses any claim, disagreement, or dispute between Itan and its franchisees. This definition includes specific matters related to the franchise agreement. These matters include the interpretation or enforcement of the franchise agreement, which means any questions about what the agreement means or how it should be implemented. Disputes also include issues related to the offer or sale of the franchise itself, covering any potential misrepresentations or misunderstandings during the initial sale process. Finally, the definition extends to any matter pertaining to the relationship between Itan and its franchisees, capturing a broad range of potential conflicts that could arise during the course of the franchise agreement.

This broad definition of 'Dispute' is significant for prospective franchisees because it sets the stage for how disagreements will be handled. Itan requires that most disputes undergo negotiation and mediation before litigation, as detailed in the FDD. Understanding what constitutes a 'Dispute' is crucial for franchisees to know when these dispute resolution procedures apply.

However, certain claims, termed 'Excluded Claims,' are not subject to mandatory negotiation or mediation unless both parties agree. These claims involve breaches of specific sections of the franchise agreement (§14, §17, and §21). This means that Itan franchisees need to be aware of which types of disputes are subject to mandatory mediation and which can proceed directly to litigation, as this can affect the time and cost involved in resolving the issue.