Does the Itan agreement require the franchisee to represent that they received a copy of the executed Franchise Agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6. REPRESENTATION. You represent to us that you received a copy of the executed Franchise Agreement.
- 7. DISPUTE RESOLUTION. Any dispute between the parties relating to this Agreement shall be brought in accordance with the dispute resolution provisions set forth in the Franchise Agreement, which are incorporated into this Agreement by reference as if fully set forth herein. You acknowledge and agree that your breach of this Agreement constitutes a material event of default under the Franchise Agreement, permitting us to terminate the Franchise Agreement in accordance with its terms.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to the 2025 Itan FDD, if you are signing a guaranty, you must represent that you received a copy of the executed Franchise Agreement. Specifically, the guaranty requires you to acknowledge receipt of the Franchise Agreement. This representation is part of the agreement's terms and conditions.
This requirement ensures that all parties involved in the agreement, especially those providing a guaranty, are fully aware of the Franchise Agreement's contents. By signing the representation, the guarantor confirms they have reviewed and understand the obligations and terms outlined in the Franchise Agreement. This step is crucial for enforcing the guaranty, as it establishes that the guarantor entered the agreement with full knowledge of the underlying franchise terms.
Furthermore, the Itan FDD states that breaching the guaranty agreement constitutes a material event of default under the Franchise Agreement. This means that if the guarantor violates any terms of the guaranty, including the representation of receiving the Franchise Agreement, Itan has the right to terminate the Franchise Agreement with the franchisee. This provision underscores the importance of the representation and the serious consequences of non-compliance.
Prospective Itan franchisees should ensure that all parties involved in the guaranty, including themselves, carefully review and understand the Franchise Agreement before signing any documents. This will help avoid potential breaches and ensure compliance with the terms of the franchise agreement.