What is the Itan franchisee's obligation if a circumstance develops that might render the anti-terrorism warranties inaccurate?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
The foregoing representations and warranties are 'continuing' representations and warranties for the duration of the franchise relationship. Accordingly, you must immediately notify us of the occurrence of an event or development of a circumstance that might render any of the foregoing representations and warranties false, inaccurate or misleading.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchisee's representations and warranties regarding anti-terrorism compliance are continuous throughout the franchise relationship. This means that the franchisee's assurances to Itan about not being involved in or associated with terrorism-related activities must remain accurate for the entire duration of the franchise agreement.
Specifically, the franchisee must immediately inform Itan if any event occurs or any situation develops that could make these anti-terrorism warranties false, inaccurate, or misleading. This obligation ensures that Itan is promptly made aware of any potential risks or changes in circumstances that could violate anti-terrorism laws or regulations.
This requirement is in place to protect Itan from potential legal and reputational damage that could arise if a franchisee were found to be in violation of anti-terrorism laws. By requiring immediate notification, Itan can take appropriate action to address the situation and mitigate any potential harm. The FDD also provides a website (www.home.treasury.gov) for franchisees to consult regarding terrorist lists maintained by the U.S. Treasury Department's Office of Foreign Assets Control.