Is an Itan franchisee allowed to incur any debt on behalf of Itan?

According to Itan's 2025 Franchise Disclosure Document, franchisees are explicitly prohibited from incurring any debt on behalf of Itan. The agreement states that neither party, which includes both Itan and the franchisee, can make any agreement or incur any debt in the name of the other party. This restriction is in place to ensure that franchisees do not create financial obligations that Itan would be responsible for.

This provision protects Itan from unauthorized financial liabilities and clarifies that the relationship between Itan and its franchisees is strictly that of franchisor and franchisee, preventing any misrepresentation of the relationship. This means an Itan franchisee cannot enter into contracts, loans, or any other financial agreements that would obligate Itan without express authorization.

For a prospective Itan franchisee, this means they must operate their business and manage their finances independently. They cannot represent themselves as having the authority to borrow money or enter into agreements on behalf of Itan. This clause reinforces the limited liability structure typical in franchising, where each party is responsible for its own debts and obligations.