According to Itan's 2025 Franchise Disclosure Document, if either party initiates legal action against the other for breaching the Franchise Agreement, the losing party is obligated to cover the prevailing party's reasonable attorneys' fees and associated costs. This policy aims to ensure that both Itan and its franchisees are protected from frivolous lawsuits and that the party found to be in the wrong bears the financial burden of the legal proceedings. This applies to disputes arising under the Franchise Agreement itself.

This "loser pays" provision is a fairly common clause in franchise agreements. It serves as a deterrent against unwarranted litigation and helps to level the playing field, ensuring that franchisees are not unfairly disadvantaged by the franchisor's potentially greater financial resources. However, prospective franchisees should be aware that if they bring a claim against Itan and lose, they will be responsible for Itan's legal expenses, which could be substantial.

It is important to note that this clause is subject to applicable laws and judicial interpretation, which may vary by jurisdiction. Franchisees should consult with an attorney to fully understand the implications of this provision in their specific circumstances and to assess the potential risks and benefits before entering into a Franchise Agreement with Itan.