Is Itan aware of any infringing uses that could materially affect an Itan franchisee's use of the Marks?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
There are currently no: (a) effective material determinations of the Patent and Trademark Office, the Trademark Trial and Appeal Board, the trademark administrator of this state or any court; (b) pending infringements, oppositions or cancellations; (c) pending material litigation matters involving any of the Marks; or (d) infringing uses we are aware of that could materially affect your use of the Marks.
Source: Item 13 — TRADEMARKS (FDD pages 33–35)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan states that there are currently no infringing uses that they are aware of that could materially affect a franchisee's use of the Marks. However, Itan's trademarks are not federally registered, which means they do not have as many legal benefits and rights as a federally registered trademark. If Itan's right to use any of these Marks is challenged, a franchisee may have to change to an alternative trademark, which may increase their expenses.
It is important to note that Itan may change the trademarks a franchisee may use from time to time, including by discontinuing use of the Marks. If this happens, the franchisee must change to the new trademark at their own expense, which Itan estimates could range from $10,000 to $20,000. The franchisee must notify Itan immediately if they discover an infringing use (or challenge to their use) of the Marks, and Itan will take the action they deem appropriate, but are not required to take any action if they do not feel it is warranted. The franchisee may not control any proceeding or litigation involving Itan's Marks.
Furthermore, the Franchise Agreement does not require that Itan protect a franchisee's right to use the Marks, protect them against claims of infringement or unfair competition arising out of their use of the Marks, or participate in their defense or indemnify them for expenses or damages they incur if they are a party to an administrative or judicial proceeding involving Itan's Marks or if the proceeding is resolved in a manner unfavorable to them. Itan has an Intellectual Property License Agreement with Gold Mark, which grants Itan the right to use the Marks in the iTAN System and sublicense the Marks to their franchisees. This agreement automatically renews annually unless terminated under specific conditions, such as Itan declaring bankruptcy or consenting to the termination. If the License Agreement is terminated, all sublicenses granted by Itan to its franchisees will continue in full force and effect until the expiration or termination of the applicable franchise agreement.