What evidence can an Itan Owner use to rebut the presumption of violating section 14?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Because (a) an Owner could circumvent the intent of §14 by disclosing Confidential Information to an immediate family member (i.e., spouse, parent, sibling, child or grandchild) and (b) it would be difficult for us to prove whether the Owner disclosed Confidential Information to the family member, each Owner agrees that he or she will be presumed to have violated the terms of §14 if any member of his or her immediate family engages in any Prohibited Activity during the Term or Post-Term Restricted Period or uses or discloses Confidential Information.
However, the Owner may rebut this presumption with evidence conclusively showing he or she did not disclose Confidential Information to the family member.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an Itan Owner can rebut the presumption of violating the terms of section 14 if a member of their immediate family engages in prohibited activity or uses confidential information. Section 14 addresses brand protection covenants.
Specifically, because an Owner could share confidential information with an immediate family member (spouse, parent, sibling, child, or grandchild), and it would be difficult for Itan to prove whether the Owner disclosed confidential information, the Owner is presumed to have violated section 14 if a family member engages in prohibited activity during the term or post-term restricted period, or uses or discloses confidential information.
However, the Itan Owner can present evidence to conclusively show that they did not disclose confidential information to the family member. This evidence would need to be strong enough to convince Itan that no confidential information was shared, despite the family member's actions.