What is the Itan franchisee's role in ensuring compliance with state laws?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
us that the execution and delivery of this Agreement, and the performance of your obligations hereunder, does not: (a) conflict with, breach or constitute a default under any agreement to which you are (or any affiliate of yours is) a party or by which your (or your affiliate's) assets are bound; (b) violate any order, injunction, decree, judgment or ruling of a Governmental Authority; or (c) violate any applicable Law. If the franchisee is an Entity, you and the Owners also jointly and severally represent and warrant to us that: (a) the Franchisee Entity is duly organized, validly existing and in good standing under the Laws of the state of its formation and has the requisite power and authority to enter into this Agreement and perform its obligations hereunder; and (b) the execution and delivery of this Agreement have been duly authorized by all requisite corporate action and this Agreement constitutes the legal, valid and binding obligation of, and is enforceable against, the Franchisee Entity in accordance with its terms.
- 23.2. General Representations. You and the Owners jointly and severally represent and warrant to us that you and the Owners are aware that: (a) other franchisees may operate under different forms of agreement and our obligations and rights with respect to franchisees differs materially in certain circumstances; and (b) we may negotiate terms or offer concessions to other franchisees and we have no obligation to offer you the same or similar negotiated terms or concessions.
- 23.3. Anti-Terrorism Compliance. You and the Owners jointly and severally represent and warrant to us that, to the best of your and their knowledge: (a) no property or interest owned by you or any Owner is subject to being "blocked" under any Anti-Terrorism Law; (b) neither you nor any Owner, nor any of their respective funding sources (including any legal or beneficial owner of an Equity Interest in the Business or Franchisee Entity) or related parties is, or has ever been: (i) a terrorist or suspected terrorist within the meaning of the Anti-Terrorism Law; or (ii) identified by name, alias, pseudonym, nickname or address on any Terrorist List, including the list of "Specially Designated Nationals" or "Blocked Persons" maintained by the U.S. Treasury Department's Office of Foreign Assets Control (texts currently available at www.home.treasury.gov);
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees play a crucial role in ensuring compliance with various laws. Specifically, if the franchisee is an entity, they, along with the owners, must guarantee that the entity is properly organized, legally sound, and in good standing according to the laws of the state where it was formed. This includes having the necessary power and authority to enter into the Franchise Agreement and fulfill its obligations. Furthermore, the franchisee must ensure that the execution and delivery of the Franchise Agreement are duly authorized and that the agreement is a legal, valid, and binding obligation enforceable against the franchisee entity.
Itan franchisees and their owners must also comply with anti-terrorism laws and all other U.S. laws that prohibit corrupt business practices, money laundering, or support for those who conspire to commit acts of terror. They must represent and warrant that no property or interest owned by them is subject to being "blocked" under any Anti-Terrorism Law, and that neither they nor their funding sources are terrorists or suspected terrorists. They must also ensure they are not identified on any Terrorist List maintained by the U.S. Treasury Department's Office of Foreign Assets Control.
Moreover, these representations and warranties are 'continuing' for the duration of the franchise relationship. Therefore, franchisees must immediately notify Itan of any event or circumstance that might render any of these representations and warranties false, inaccurate, or misleading. This ongoing obligation highlights the importance of franchisees staying informed and proactive in maintaining compliance with all applicable laws throughout their franchise term.