What agreements must the transferee of an Itan franchise sign?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ent standards and specifications (these changes must be completed within 12 months after the Transfer or such shorter period of time we specify);
- (i) you or the transferee pay us a $10,000 transfer fee to defray expenses we incur related to the Transfer (in addition to the transfer fee, you must reimburse us for any commission we pay our broker if our broker finds the transferee);
- (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);
- (l) we choose not to exercise our right of first refusal described in §19.5; and
- (m) you or the transferring Owner, as applicable, and the transferee satisfy all other conditions we reasonably require as a condition to approval of the Transfer.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, in order to complete a transfer of an Itan franchise, the transferee must sign certain agreements. Specifically, the franchisee and their owners must sign a General Release. Additionally, they must sign all documents that Itan reasonably requests to complete the transfer.
Itan may also require the franchisee to enter into a written subordination agreement to ensure that the transferee's financial obligations to Itan take precedence over any financial obligations to the transferring franchisee. This protects Itan's financial interests in the ongoing operation of the franchise.
It is important to note that Itan's consent to the transfer does not waive any claims Itan has against the transferor. It also does not remove the transferee's obligation to comply with all the terms of the franchise agreement. This ensures that the new franchisee is fully responsible for adhering to the franchise agreement from the point of transfer forward.