Does Itan have to ensure that an assignee of the Franchise Agreement is willing and able to assume Itan's obligations?

According to Itan's 2025 Franchise Disclosure Document, Itan will not assign the Franchise Agreement except to an assignee who, in Itan's good faith judgment, is willing and able to assume Itan's obligations under the Franchise Agreement. This obligation is specifically noted within the context of amendments made to comply with North Dakota Franchise Law.

This means that if Itan decides to transfer or assign the Franchise Agreement to another party, they must ensure that the new party is both willing and financially capable of fulfilling Itan's responsibilities as outlined in the original agreement. This provides a level of protection for the franchisee, ensuring that the franchisor cannot simply transfer their obligations to an entity that is unable to meet them.

For a prospective Itan franchisee, this clause offers some security. It ensures that should Itan decide to assign the Franchise Agreement, the assignee must be vetted to ensure they can uphold the franchisor's obligations. While Itan's "good faith judgment" leaves some room for interpretation, it does establish a baseline requirement for the assignee's willingness and ability to perform the required duties. Franchisees in North Dakota may find this particularly relevant due to the state-specific acknowledgement of this clause.