What conditions must be met for an Itan Owner to be deemed permanently disabled?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **19.4.
Owner Death or Disability.** Within 180 days after an Owner's death or permanent disability, the Owner's Equity Interest in the Business or Franchisee Entity must be Transferred to another Person in compliance with §19.2 or §19.3.
An Owner is deemed to have a "permanent disability" only if he/she has a medical or mental problem preventing him/her from substantially complying with his/her obligations under this Agreement or operating the Business in the manner required by this Agreement and the Manual for a continuous period of at least three (3) months.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an Owner is considered to have a "permanent disability" if specific conditions are met. The Owner must have a medical or mental problem that prevents them from substantially fulfilling their obligations under the Franchise Agreement. This disability must also hinder their ability to operate the Itan business in the manner required by the Franchise Agreement and the Manual.
Furthermore, this inability to comply with obligations and operate the business must persist for a continuous period of at least three months. This implies that a temporary illness or injury that does not last for this duration would not qualify as a permanent disability under the terms of the Itan franchise agreement.
This definition is important because within 180 days after an Owner's death or permanent disability, the Owner's Equity Interest in the Business or Franchisee Entity must be Transferred to another Person in compliance with specified sections of the agreement. Therefore, the determination of permanent disability triggers specific actions regarding the ownership and operation of the Itan franchise.