Does the Itan franchise agreement create a partnership between the parties?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Nothing in this Agreement is intended, nor shall be deemed, to confer any rights or remedies upon any Person not a party to this Agreement.
- **13.7.
Integration.** THIS AGREEMENT CONSTITUTES THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CHANGED EXCEPT BY A WRITTEN DOCUMENT SIGNED BY BOTH PARTIES.
Any email or informal electronic communication shall not be deemed to modify this Agreement unless it is signed by both parties and specifically states it is intended to modify this Agreement.
The attachment(s) are part of this Agreement, which together with any Amendments or Addenda executed on or after the Effective Date constitutes the entire understanding and agreement of the parties.
There are no other oral or written understandings or agreements between the parties about the subject matter of this Agreement. Any representations not specifically contained in this Agreement made before entering into this Agreement do not survive after the signing of this Agreement. Nothing in this Agreement is intended to disclaim any of the representations we made in the Franchise Disclosure Document. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (a) waiving any claims under any applicable state franchise law, including fraud in the inducement or (b) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to the 2025 Itan Franchise Disclosure Document, the franchise agreement does not establish a partnership between the parties. Section 13.6 of the agreement explicitly states that nothing within the agreement is intended nor should be deemed to confer any rights or remedies upon any person not a party to the agreement. This clarifies that the agreement is strictly between the franchisor, iTAN Franchising, Inc., and the franchisee, without extending rights to third parties.
Section 13.7 further reinforces this by stating that the agreement constitutes the entire understanding between the parties and can only be changed by a written document signed by both parties. This integration clause ensures that no other oral or written understandings or agreements exist outside of the signed agreement, preventing any implication of a partnership through informal arrangements. The clause also specifies that any representations made before entering into the agreement do not survive after signing, except for those made in the Franchise Disclosure Document itself, protecting the franchisee from unwritten claims.
This clear delineation is important for prospective Itan franchisees as it confirms their status as independent business owners rather than partners. Franchisees should be aware that their rights and obligations are strictly defined by the franchise agreement and any amendments, and they should not rely on any external representations or understandings. This structure provides a clear legal framework for the franchise relationship, minimizing potential ambiguities about liability and control.