For Itan franchises, what is the consequence if a supplier terminates its relationship with Itan or refuses to supply goods or services to its franchisees?

According to Itan's 2025 Franchise Disclosure Document, a supplier's termination of its relationship with Itan or refusal to supply goods or services to its franchisees may cause significant harm to Itan and its franchisees.

If an Itan franchisee fails to pay a system supplier on time, it could jeopardize the supplier's relationship with Itan and other franchisees. Franchisees are expected to promptly pay all amounts owed to system suppliers unless there is a legitimate dispute.

If a franchisee has a dispute with a supplier, they must promptly notify the supplier of the claim and diligently pursue resolution or legal action. Any trade debt that remains unpaid more than 30 days after the due date constitutes a material breach of the Franchise Agreement, unless alternative payment terms are agreed upon or legal action is initiated to contest the debt before the end of the 30-day period. This highlights the importance of maintaining good relationships with suppliers and resolving payment issues promptly to avoid potential disruptions to the Itan franchise system.