After the Itan franchise agreement is terminated, what must the franchisee do regarding fictitious or assumed name registrations related to the use of Itan's marks?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 21.1. Obligations of You and the Owners. After the termination, expiration or Transfer of this Agreement, you and the Owners agree to:
- (a) immediately cease use of the Intellectual Property;
- (b) comply with all post-term covenants described in §14 or a Franchise Owner Agreement;
- (c) cancel all fictitious or assumed name registrations relating to your use of the Marks;
- (d) pay us all amounts you owe including, if applicable, liquidated damages pursuant to §21.3;
- (e) comply with our data retention policies relating to Business Data;
- (f) transfer Customer Data (and, if we so request, assign all customer contracts) to us or our designee;
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, after the termination, expiration, or transfer of the franchise agreement, the franchisee and owners must cancel all fictitious or assumed name registrations relating to the use of Itan's marks. This requirement is part of the post-term obligations that franchisees must adhere to.
This means that if a franchisee has registered a business name that includes Itan's trademarks or implies an association with the Itan brand, they must legally dissolve those registrations. This ensures that the franchisee no longer operates under a name that could be confused with the Itan brand after the franchise agreement ends.
This obligation protects Itan's brand identity and prevents former franchisees from potentially benefiting from Itan's reputation after their agreement concludes. It is a standard practice in franchising to ensure brand consistency and prevent consumer confusion. Franchisees should be aware of this requirement and take necessary steps to comply with it upon termination of their franchise agreement.