Does the Itan franchise agreement allow either party to make express agreements on behalf of the other?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither party may: (a) make any express or implied agreement, warranty or representation, or incur any debt, in the name of or on behalf of the other; or (b) represent that our relationship is other than franchisor and franchisee.
In addition, neither party will be obligated by any agreements or representations made by the other that are not expressly authorized by this Agreement.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchise agreement explicitly prohibits either party from making agreements, warranties, or incurring debt on behalf of the other. It also states that neither party can represent their relationship as anything other than franchisor and franchisee.
This means that as an Itan franchisee, you cannot enter into any agreements or make any representations that would bind Itan, unless expressly authorized by the franchise agreement. Similarly, Itan cannot make agreements or representations on your behalf without your explicit consent or authorization as outlined in the agreement.
This provision protects both Itan and its franchisees from being held liable for unauthorized actions or representations made by the other party. It ensures that each party is responsible for their own actions and obligations, and that any agreements or representations must be expressly authorized to be binding. This is a fairly standard clause in franchise agreements to clearly define the boundaries of the franchisor-franchisee relationship and prevent potential legal complications.