In the Itan franchise agreement, what is the required format for Itan's approval to be binding?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Modification. This Addendum and the Franchise Agreement when executed constitute the entire agreement and understanding between the Parties with respect to the subject matter contained herein and therein. Any and all prior agreements and understandings between the Parties and relating to the subject matter contained in this Addendum and the Franchise Agreement, whether written or verbal, other than as contained within the executed Addendum and Franchise Agreement, are void and have no force and effect. In order to be binding between the Parties, any subsequent modifications must be in writing signed by the Parties.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, any modifications to the franchise agreement must be in writing and signed by all parties involved to be considered binding. This requirement ensures that all changes to the original agreement are formally documented and agreed upon by both Itan and the franchisee, preventing potential misunderstandings or disputes.
This stipulation is a standard practice in franchising, as it provides a clear and enforceable record of any alterations to the initial contract. It protects both the franchisee and Itan by ensuring that all agreed-upon changes are legally sound and can be referenced in the future if necessary. The written format also allows for a thorough review of the modifications before they are finalized, giving each party the opportunity to seek legal counsel or clarify any concerns.
For a prospective Itan franchisee, this means that any promises or assurances made by Itan representatives that are not included in the written agreement or a signed modification may not be legally binding. Therefore, it is crucial to ensure that all important terms and conditions are documented in writing and properly executed by all parties to avoid future disagreements. This requirement underscores the importance of carefully reviewing the franchise agreement and any subsequent modifications with legal counsel before signing.