For Itan franchises, what is the franchisee's obligation if any representation or warranty regarding anti-terrorism laws becomes false?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Laws currently in effect, or enacted in the future, that prohibit corrupt business practices, money laundering or the aid or support of Persons who conspire to commit acts of terror against any Person or government.
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 representations and warranties related to anti-terrorism compliance are 'continuing' for the duration of the franchise relationship. This means that the franchisee's obligations regarding these representations extend throughout the entire term of the franchise agreement.
Specifically, if an event occurs or a circumstance develops that might render any of the anti-terrorism representations and warranties false, inaccurate, or misleading, the franchisee must immediately notify Itan. This obligation ensures that Itan is promptly informed of any potential issues related to compliance with anti-terrorism laws.
This requirement is significant because failure to comply with anti-terrorism laws can have severe legal and financial consequences for both the franchisee and Itan. By requiring immediate notification, Itan aims to mitigate potential risks and maintain compliance with applicable laws and regulations. Prospective franchisees should understand the importance of ongoing compliance and the need to promptly report any changes that could affect the accuracy of these representations.