What constitutes an act that may adversely affect the reputation of the Itan System or Marks?

According to Itan's 2025 Franchise Disclosure Document, if a franchisee or owner commits an act that can reasonably be expected to materially and adversely affect the reputation of the Itan System or the goodwill associated with its Marks, it constitutes a breach of the franchise agreement. This provision underscores the importance Itan places on maintaining its brand image and the quality associated with its services.

For a prospective Itan franchisee, this means that any actions, whether intentional or unintentional, that could harm the brand's reputation could lead to consequences under the franchise agreement. This could include actions taken by the franchisee, their employees, or even owners associated with the franchise.

It is important to note that the determination of whether an act can reasonably be expected to materially and adversely affect the reputation of the System or goodwill associated with the Marks is subjective. Franchisees should seek clarification from Itan regarding specific examples of actions that could be considered a breach of this provision to ensure compliance and avoid potential disputes.