What is the consequence if there is a material change to the terms of sale for an Itan franchise transfer?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Section 31125 of the California Corporations Code requires us to give you a disclosure document, in a form containing the information that the Commissioner may by rule or order require, before a solicitation of a proposed material modification of an existing franchise.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, California law requires Itan to provide franchisees with a disclosure document before soliciting a proposed material modification of an existing franchise. This disclosure document must contain information that the California Commissioner may require. This requirement is based on Section 31125 of the California Corporations Code.
This means that if Itan proposes to change the terms of an existing franchise agreement in California in a way that is considered a 'material modification,' they must first provide the franchisee with a specific disclosure document. The exact content of this document is determined by California regulations.
For a prospective Itan franchisee in California, this provides an added layer of protection. It ensures they receive proper notification and information should Itan seek to alter the franchise agreement in a significant way after the initial agreement is signed. This allows the franchisee to make informed decisions about whether to accept the proposed changes.