What agreement must the franchisee and owner execute as a condition to Itan's consent to the transfer?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
C. As a condition to our consent to the transfer [your ability to enter into a successor franchise agreement], you and Owner have agreed to execute this Agreement upon the terms and conditions stated below.
D. In consideration of our consent to the transfer [our entering into a successor franchise agreement], and for other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and intending to be legally bound, you and Owner hereby agree as set forth below.
(j) you and your Owners sign a General Release;
(k) you agree to subordinate the transferee's financial obligations to you to the transferee's financial obligations owed to us pursuant to the franchise agreement (we may require you to enter into a written subordination agreement);
You and the Owners (and transferee) must sign all documents we reasonably request to effectuate and document the Permitted Transfer.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, as a condition of consent to the transfer of a franchise, the franchisee and the owner must agree to execute an agreement based on the terms and conditions outlined in the document. Itan notes that the franchisee has notified them of their desire to transfer the Franchise Agreement and all rights related to it, or an ownership interest in the franchisee entity, to a transferee.
Itan states that the franchisee and owner have agreed to execute this agreement based on the terms and conditions outlined in the document as a condition of their consent to the transfer. In consideration of Itan's consent to the transfer, and for other good and valuable consideration, the franchisee and owner agree to the terms set forth in the agreement.
Additionally, the franchisee and their owners must sign a General Release as part of the transfer conditions. The franchisee must also agree to subordinate the transferee's financial obligations to the franchisee's financial obligations owed to Itan under the franchise agreement, potentially requiring a written subordination agreement. The franchisee and the owners (and transferee) must sign all documents Itan reasonably requests to effectuate and document the Permitted Transfer.