Is an Itan franchisee allowed to make any agreement in the name of Itan?
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, a franchisee is explicitly prohibited from making any agreements, warranties, or representations, or incurring any debt in the name of or on behalf of Itan. Additionally, franchisees cannot represent their relationship with Itan as anything other than that of franchisor and franchisee. This restriction ensures that franchisees do not create any unauthorized obligations or liabilities for Itan.
This provision protects Itan from being bound by agreements or representations made by franchisees that Itan has not expressly authorized. This is a standard practice in franchising, as franchisors need to maintain control over their brand and business practices. Franchisees must ensure they do not act in a way that could be perceived as representing Itan directly, especially in contractual or financial matters.
This clause is designed to avoid confusion and potential legal issues that could arise if franchisees were allowed to act with the full authority of the franchisor. Prospective Itan franchisees should be aware of this limitation and ensure that all their business dealings are conducted in their own name and on their own behalf, clearly distinguishing themselves as independent operators rather than agents of Itan.