In the event of an inconsistency between the Itan Franchise Agreement and the Lease, which agreement's terms will control?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- Miscellaneous.
- (a) In the event of any inconsistency between the terms of this Agreement and the terms of the Lease, the terms of this Agreement control.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, in the event of any inconsistency between the terms of the Lease and the terms of the agreement between the landlord, tenant, and Itan, the terms of that agreement will control. This agreement outlines the rights and obligations of the landlord, the franchisee (tenant), and Itan to protect Itan's interests under the Franchise Agreement.
This means that if there's a conflict between what's written in the lease and what's written in the agreement between the landlord, tenant, and Itan, the terms of the agreement will take precedence. This is designed to safeguard Itan's interests and ensure that the franchise operations can continue smoothly, even if there are issues with the lease between the franchisee and the landlord.
For a prospective Itan franchisee, this clause offers a level of protection. It ensures that certain rights of Itan, such as the ability to cure defaults or take over the lease, are upheld even if the lease terms might conflict. However, it's crucial for franchisees to understand the full scope of this agreement and how it interacts with their lease, as it could impact their rights and obligations as a tenant. Franchisees should carefully review this agreement with legal counsel to fully understand its implications.