How can an Itan employee rebut the presumption that they breached the agreement due to a family member's actions?

According to Itan's 2025 Franchise Disclosure Document, an employee is presumed to have breached the agreement if an immediate family member engages in prohibited activities or discloses confidential information. Immediate family members are defined as a parent, sibling, child, or grandchild. This presumption exists because it would be difficult for Itan to prove whether the employee disclosed confidential information to the family member, or that the employee is using the family member to circumvent the agreement.

However, the employee can challenge this assumption. To rebut the presumption of a breach, the employee must provide conclusive evidence demonstrating that they did not disclose confidential information to the family member.

This requirement places a significant burden on Itan franchisees and their employees. They must be prepared to prove a negative—that they did not share information—which can be challenging. Franchisees should ensure their employees understand these stipulations and maintain strict confidentiality to avoid potential breaches and legal ramifications. It is also important to note that this clause is designed to protect Itan's confidential information and maintain the integrity of its franchise system.