What financial obligations of the franchisee are secured under the Itan franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to secure Franchisee's financial obligations under the Franchise Agreement and all other Definitive Agreements (collectively, the "Secured Agreements") you hereby personally and unconditionally: (a) guarantee to us and our successors and assigns, that Franchisee shall punctually fulfil all of its payment and other financial obligations under the Secured Agreements; and (b) agree to be personally bound by, and personally liable for, each and every monetary provision in the Secured Agreements.
You waive: (i) acceptance and notice of acceptance by us of the foregoing undertakings; (ii) notice of demand for payment of any indebtedness guaranteed; (iii) protest and notice of default to any party with respect to the indebtedness guaranteed; (iv) any right you may have to require that an action be brought against Franchisee or any other Person as a condition of liability; and (v) the defense of the statute of limitations in any action hereunder or for the collection of any indebtedness hereby guaranteed.
You agree that: (a) your direct and immediate liability under this guaranty is joint and several with Franchisee and all other signatories to this Agreement; (b) you will render any payment required under the Secured Agreements upon demand if Franchisee fails to promptly do so; (c) your liability is not contingent or conditioned upon our pursuit of any remedies against Franchisee or any other Person; and (d) your liability will not be diminished, relieved or otherwise affected by any extension of time, credit or other indulgence we grant to Franchisee or any other Person, including the acceptance of any partial payment or performance, or the compromise or release of any Claims, none of which shall in any way modify or amend this guarantee, which remains continuing and irrevocable during the term of each Secured Agreement and following the termination, expiration or transfer of each Secured Agreement to the extent any financial obligations under a Secured Agreement survive such termination, expiration or transfer.
This guaranty will continue unchanged by the occurrence of any bankruptcy of Franchisee or any assignee or
successor of Franchisee or by any abandonment of one or more of the Secured Agreements by a trustee of Franchisee. Neither your obligation to make payment in accordance with the terms of this undertaking nor any remedy for enforcement will be impaired, modified, released or limited in any manner whatsoever by any impairment, modification, release or limitation of the liability of Franchisee or its estate in bankruptcy or of any remedy for enforcement, resulting from the operation of any present or future provision of the U.S. Bankruptcy Act or other statute, or from the decision of any court or agency.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchisee's financial obligations under the Franchise Agreement and all other Definitive Agreements are secured. As part of securing these financial obligations, the franchisee provides a personal and unconditional guarantee to Itan, its successors, and assigns, ensuring that the franchisee will fulfill all payment and other financial obligations under the Secured Agreements.
This guarantee means the franchisee is personally bound by and liable for every monetary provision in the Secured Agreements. The franchisee also waives certain rights, including the right to require Itan to first bring an action against the franchisee or any other person as a condition of liability, and the defense of the statute of limitations in any action related to the guarantee or the collection of any guaranteed debt.
Furthermore, the franchisee's liability under this guarantee is joint and several with the franchisee and all other signatories to the agreement. The franchisee is obligated to make any payment required under the Secured Agreements upon demand if the franchisee fails to do so promptly. Itan is not required to pursue any remedies against the franchisee or any other person before demanding payment from the guarantor. The guarantor's liability will not be affected by any extensions of time, credit, or other allowances granted to the franchisee, including the acceptance of partial payments or the compromise or release of any claims.
This guarantee remains continuing and irrevocable during the term of each Secured Agreement and following the termination, expiration, or transfer of each Secured Agreement to the extent any financial obligations under a Secured Agreement survive such termination, expiration, or transfer. The guarantee will continue unchanged even if the franchisee or any assignee or successor of the franchisee declares bankruptcy or abandons one or more of the Secured Agreements.