Does the Itan franchise agreement allow either party to make express warranties 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, under the franchise agreement, neither Itan nor the franchisee is permitted to make any express or implied agreement, warranty, or representation, or incur any debt, in the name of or on behalf of the other party. Additionally, neither party can represent their relationship as anything other than franchisor and franchisee. This is a fairly standard clause in franchise agreements.
This provision ensures that each party remains independent and is not bound by the unauthorized actions or representations of the other. It protects Itan from being held liable for any unauthorized warranties or agreements made by the franchisee. Similarly, it protects the franchisee from being held responsible for obligations or representations made by Itan that are not expressly authorized in the franchise agreement.
This clause reinforces the independent nature of the franchisor-franchisee relationship, clarifying that neither party can act as an agent for the other unless explicitly authorized. Prospective Itan franchisees should be aware of this restriction and ensure that all agreements and representations are clearly documented and authorized by the appropriate party to avoid potential disputes or liabilities.