How are disputes related to the Itan agreement resolved?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- than a mediator, has exclusive jurisdiction to decide the threshold issue of whether a Dispute involves an Excluded Claim (i.e., whether any Claim alleges a breach of §14, §17 or §21).
- 22.3. Venue. All mediation and litigation shall take place in the county in which we maintain our principal place of business at the time the Dispute arises (currently, San Diego County, California). The parties irrevocably waive any objection to such venue and consent to the jurisdiction of such courts.
- 22.4. Attorney's Fees & Costs. If a Dispute is resolved through a judicial proceeding, the substantially prevailing party is entitled to reimbursement of its costs and expenses, including reasonable accounting and legal fees and court costs. In addition, if you or an Owner breach any term of a Definitive Agreement, you must reimburse us for all reasonable legal fees and other expenses we incur as a result of the breach, regardless of whether the breach is cured prior to commencement of formal dispute resolution proceedings.
- 22.5. Waivers. UNLESS PROHIBITED BY APPLICABLE LAW, ANY CLAIM (OTHER THAN FOR PAYMENT OF MONIES OWED OR AN EXCLUDED CLAIM) MUST BE BROUGHT BY FILING A WRITTEN DEMAND FOR MEDIATION WITHIN ONE (1) YEAR FOLLOWING THE CONDUCT, ACT OR EVENT OR OCCURRENCE GIVING RISE TO THE CLAIM, OR THE RIGHT TO ANY REMEDY WILL BE DEEMED FOREVER WAIVED AND BARRED.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, disputes are resolved through mediation and litigation, which must take place in San Diego County, California, where Itan maintains its principal place of business. Both parties consent to the jurisdiction of these courts and waive any objections to the venue. However, the franchisor has exclusive jurisdiction to decide whether a dispute involves an Excluded Claim (breach of §14, §17 or §21).
If a dispute goes to court, the prevailing party can recover costs and expenses, including reasonable accounting and legal fees, as well as court costs. If a franchisee breaches any term of a Definitive Agreement, they must reimburse Itan for all reasonable legal fees and other expenses, regardless of whether the breach is resolved before formal dispute resolution begins.
Itan requires that any claim (other than for payment of monies owed or an Excluded Claim) must be brought by filing a written demand for mediation within one year of the event giving rise to the claim. Failure to do so results in a waiver of any remedy. This means franchisees must act quickly to address any issues or concerns they have with Itan, or risk losing their right to take action.