What is the Itan employee's agreement regarding their resources, business experience, and opportunities?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
e to the benefit of any assignee(s) or other legal successor(s) to our interest in this Agreement, provided that we shall, subsequent to any such assignment, remain liable for any obligations incurred by us prior to the effective date of the assignment. We may also delegate our obligations under this Agreement to one or more Persons without assigning the Agreement.
- 19.2. By You. The rights and duties created by this Agreement are personal to you and the Owners. We are granting you franchise rights in reliance upon the character, skill, attitude, business ability and financial resources of you and your Owners. Because this Agreement is a personal services contract, neither you nor any Owner may engage in a Transfer (other than a Permitted Transfer) without our prior approval. Any Transfer (other than a Permitted Transfer) without our approval is void and constitutes a breach of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the agreement specifies that the franchise rights granted to the franchisee are based on the character, skills, attitude, business ability, and financial resources of the franchisee and their owners. This highlights the importance Itan places on the personal attributes and capabilities of its franchisees. Because of this reliance, any transfer of the franchise, other than a permitted transfer, requires prior approval from Itan.
Itan emphasizes that the agreement is a personal services contract, meaning that the success of the franchise is closely tied to the individual efforts and expertise of the franchisee. This is a common practice in franchising, as the franchisor wants to ensure that the franchisee is capable of upholding the brand's standards and delivering quality service. The requirement for approval before any transfer ensures that any new owner meets Itan's standards.
Itan retains the right to assign the agreement to another party without prior notice to the franchisee. However, Itan remains liable for any obligations incurred before the assignment's effective date. This provides some assurance to the franchisee that Itan cannot simply transfer its responsibilities without accountability for past actions. The agreement also states that Itan may delegate its obligations to one or more persons without assigning the entire agreement, giving Itan flexibility in managing its responsibilities.