What is the Itan franchisor's obligation regarding site approval or disapproval after receiving the required materials?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You must send us a complete site report that includes all information we require about your proposed site. We try to approve or disapprove sites within 30 days after we receive the required materials. Your site is deemed disapproved if we fail to issue our written approval within the 30-day period.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 22–31)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan tries to approve or disapprove a potential site for a new franchise location within 30 days after receiving all required materials from the franchisee. If Itan fails to provide written approval within this 30-day period, the site is considered disapproved.
This 30-day window is important for prospective franchisees because it sets a clear expectation for how long the site approval process should take. If Itan does not respond within this timeframe, the franchisee can assume the site has been rejected and move on to evaluating other locations. This helps to keep the opening process on track.
It is important to note that Itan may terminate the Franchise Agreement if a franchisee fails to identify and obtain site approval within 90 days after signing the Franchise Agreement, or if Itan and the franchisee cannot agree on a site. This underscores the importance of franchisees diligently searching for and submitting suitable locations for approval in a timely manner.