What corporate representations are required by Itan from you and your owners?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 12.1. Corporate Representations. You and your Owners jointly and severally represent and warrant to us that the execution and delivery of this Agreement, and the performance of your obligations hereunder, does not: (a) conflict with, breach or constitute a default under any agreement to which you are (or any affiliate of yours is) a party or by which your (or your affiliate's) assets are bound; (b) violate any order, injunction, decree, judgment or ruling of a Governmental Authority; or (c) violate any applicable Law. If the developer is an Entity, then you and your Owners also jointly and severally represent and warrant to us that: (a) the Developer Entity is duly organized, validly existing and in good standing under the Laws of the state of its formation and has the requisite power and authority to enter into this Agreement and to perform its obligations hereunder; and (b) the execution and delivery of this Agreement have been duly authorized by all requisite corporate action and this Agreement constitutes the legal, valid and binding obligation of, and is enforceable against, the Developer Entity in accordance with its terms.
- 12.2. General Representations. You and your Owners jointly and severally represent and warrant to us that: (a) other area developers may operate under different forms of agreement and our obligations and rights with respect to area developers differs materially in certain circumstances; and (b) we may negotiate terms or offer concessions to other area developers and we have no obligation to offer you the same or similar negotiated terms or concessions.
- 12.3. Anti-Terrorism Compliance. You and your Owners jointly and severally represent and warrant to
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, both the franchisee and their owners must make certain representations to Itan. These representations are legally binding assurances about their ability to enter into the franchise agreement and comply with the law. Specifically, these representations confirm that entering into the agreement does not violate any existing agreements, conflict with any governmental orders, or contravene any applicable laws.
If the franchisee is a business entity (like a corporation or LLC), additional representations are required. These include assurances that the entity is properly organized, legally existing, and in good standing according to the laws of the state where it was formed. Furthermore, the franchisee must confirm that the execution and delivery of the Franchise Agreement have been duly authorized by all necessary corporate actions, making the agreement a legal, valid, and binding obligation enforceable against the franchisee entity.
Itan also requires that the franchisee and owners acknowledge that other franchisees may have different agreements and that Itan is not obligated to offer the same terms or concessions to all franchisees. Finally, the franchisee and owners must warrant their compliance with anti-terrorism laws, confirming that they are not subject to any blocked property or interests under anti-terrorism laws, are not terrorists or suspected terrorists, and are in compliance with all U.S. laws prohibiting corrupt business practices and money laundering.