When are attorneys' fees and costs due to Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE 1 | AMOUNT 2, 3 | DUE DATE | REMARKS |
|---|---|---|---|
| Attorneys' Fees and Costs | Amount of attorneys' fees and costs we incur | Upon demand | You must reimburse us for all attorneys' fees and costs we incur relating to your breach of the Franchise Agreement or any related agreement. |
Source: Item 6 — OTHER FEES (FDD pages 11–15)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must reimburse Itan for all attorneys' fees and costs they incur relating to a franchisee's breach of the Franchise Agreement or any related agreement. These fees and costs are due upon demand. This means that Itan can request immediate payment for these legal expenses.
This clause is standard in most franchise agreements, as it protects the franchisor from legal expenses incurred due to a franchisee's actions. However, the "upon demand" payment term means an Itan franchisee needs to be prepared to pay these costs quickly, which could strain their finances if a dispute arises.
Prospective Itan franchisees should carefully consider this obligation and ensure they have sufficient resources to cover potential legal costs. It would be prudent to discuss with Itan under what circumstances these fees are typically charged and if there is any possibility of negotiating payment terms in the event of a dispute.