What is the duration of the standard 'Restricted Period' for an Itan employee or independent contractor?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Restricted Period" means the two (2) year period after you cease to be an employee or independent contractor of Franchisee; provided, however, that if a court of competent jurisdiction determines the twoyear period is too long to be enforceable then Restricted Period means the one-year period after you cease to be an employee or independent contractor of Franchisee.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the standard 'Restricted Period' for an employee or independent contractor is two years after they cease working for the franchisee. This means that for a period of two years after leaving their position, the former employee or contractor is subject to certain restrictions as outlined in their agreement with Itan.
However, there is a condition that could shorten this period. If a court determines that the two-year restriction is too long to be enforceable, the 'Restricted Period' is reduced to one year. This acknowledges that the enforceability of non-compete agreements can vary by jurisdiction, and a one-year restriction may be deemed more reasonable and enforceable by the courts.
It's important for prospective Itan franchisees to understand these restrictions and their potential impact on employees and contractors. Franchisees should consult with legal counsel to ensure that their non-compete agreements are enforceable in their specific location and to fully understand the implications of these restrictions.