For Itan, what constitutes a 'permanent disability' of an owner?

According to Itan's 2025 Franchise Disclosure Document, a permanent disability for an owner is specifically defined in the context of transferring ownership. If an owner experiences a medical or mental problem that prevents them from substantially fulfilling their obligations under the Franchise Agreement or operating the business as required by the agreement and the manual, they may be considered permanently disabled.

However, this condition must persist continuously for at least three months to qualify as a permanent disability. This definition is important because, upon an owner's death or permanent disability, their equity interest in the Itan business or franchisee entity must be transferred to another person within 180 days. This transfer must comply with specific sections of the franchise agreement related to transfers, ensuring a smooth transition of ownership and continued operation of the franchise.

This clause protects Itan by ensuring that franchises continue to be actively managed and operated according to its standards, even in the event of an owner's incapacity. For a prospective franchisee, this means understanding the importance of having a succession plan or insurance in place to manage such situations, ensuring the business can continue without disruption and in compliance with the franchise agreement.