Is an assignment fee permitted if the Itan tenant assigns the lease to Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Right to Assign. At any time, including, without limitation, upon the expiration or termination of the Franchise Agreement, and without Landlord's prior consent, Tenant may assign the Lease to Franchisor. In such event, Franchisor may thereafter assign the Lease to another iTAN franchisee or to an entity owned and/or controlled by Franchisor. If it does, Franchisor must first obtain Landlord's written approval of the assignee. Landlord, however, must neither unreasonably withhold nor delay its approval thereof. Landlord will acknowledge any such assignment in writing. No assignment permitted under this Section is subject to any assignment or similar fee or will cause any rental acceleration.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a tenant assigns the lease to Itan, no assignment fee is permitted. Specifically, the Lease Addendum outlines the rights and obligations of the landlord, tenant (franchisee), and Itan.
The document states that at any time, including upon the expiration or termination of the Franchise Agreement, the tenant may assign the lease to Itan without the landlord's prior consent. In such an event, Itan can then assign the lease to another Itan franchisee or an entity they own or control, but they must first obtain the landlord's written approval, which the landlord cannot unreasonably withhold or delay.
The Lease Addendum explicitly states that no assignment fee or rental acceleration will apply to assignments permitted under this section. This provision protects the franchisee from incurring additional costs when assigning the lease to Itan, providing a degree of financial security in such a transfer.