Does the definition of 'Equity Interest' for Itan include indirect ownership?

According to Itan's 2025 Franchise Disclosure Document, the definition of 'Owner' includes those with direct or indirect ownership in the franchise. Specifically, the FDD states that an 'Owner' is a person who 'directly or indirectly through one or more intermediaries owns an Equity Interest in the Business or Franchisee Entity.'

This definition has significant implications for prospective Itan franchisees. It means that not only direct owners but also individuals with indirect ownership, even through multiple layers of entities, are considered 'Owners' under the franchise agreement. This is a common practice in franchising to ensure that all individuals with a financial stake and control over the franchise are bound by the terms of the agreement.

For example, if a franchisee entity is owned by another holding company, the owners of the holding company would also be considered 'Owners' of the Itan franchise. This ensures that all individuals with a controlling interest are subject to the franchisor's requirements and restrictions, such as non-compete clauses and transfer restrictions. Therefore, prospective franchisees need to be aware that anyone with a direct or indirect equity interest will likely need to sign documents and be subject to certain obligations under the franchise agreement.