Does the Itan agreement grant discretion to make decisions that may adversely affect the franchisee's interests?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement, and the relationship of the parties inherent in this Agreement, grants us discretion to make decisions, take actions or refrain from taking actions not inconsistent with our explicit rights and obligations under this Agreement that may favorably or adversely affect your interests.
We will use our judgment to exercise this discretion based on our assessment of our own interests and balancing our interests against the interests of our franchisees, but without considering the individual interests of you or any other franchisee.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchise agreement grants Itan the discretion to make decisions that could affect a franchisee's interests, either favorably or unfavorably.
Specifically, the FDD states that the agreement and the inherent relationship between the parties allow Itan to make decisions, take actions, or refrain from taking actions, provided they are consistent with Itan's explicit rights and obligations. In exercising this discretion, Itan will use its judgment based on its own interests and balance those interests against the collective interests of its franchisees.
However, Itan will not consider the individual interests of any specific franchisee when making such decisions. This means that while Itan must act within the bounds of the franchise agreement, its decisions may not always align with what is best for an individual franchisee's specific situation. Prospective franchisees should understand that Itan's decisions will be made with the broader network in mind, potentially leading to outcomes that could adversely affect their particular franchise.