What is the geographic scope of the limitations on franchise agreement provisions described for Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
As a result, any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor.
As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
The claims limitation provision in Section 22.5 of the Franchise Agreement does not apply to Washington franchisees.
WISCONSIN
The Wisconsin Fair Dealership Law, Chapter 135 of the Wisconsin Statutes supersedes any provision of the Franchise Agreement and Supplement Agreements (if applicable) if such provision is in conflict with that law. The Franchise Disclosure Document, the Franchise Agreement and the Supplemental Agreements are amended accordingly.
RHODE ISLAND
In recognition of the requirements of the Rhode Island Franchise Investment Act (the "Rhode Island Franchise Law"), the Disclosure Document, Franchise Agreement and Supplemental Agreements are amended as follows:
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- We will not require that you prospectively assent to a waiver, condition, stipulation, or provision that purports to relieve any person from liability imposed by the Rhode Island Franchise Law. This provision does not apply to the settlement of disputes, claims, or civil lawsuits brought under the Rhode Island Franchise Law.
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- Section 19-28.1-14 of the Rhode Island Franchise Law provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." If a claim is enforceable under the Rhode Island Franchise Law, we will not restrict jurisdiction or venue to a forum outside the State of Rhode Island or require the application of the laws of another state.
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- We will not prohibit you from joining a trade association or association of franchisees. We will not retaliate against you for engaging in these activities.
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- Any provision in the Franchise Agreement that limits the time period in which you may assert a legal claim against us under the Rhode Island Franchise Law is amended to provide for a four (4) year statute of limitations for purposes of bringing a claim arising under the Rhode Island Franchise Law. Notwithstanding the foregoing, if a rescission offer has been approved by the Rhode Island director of business registration, then the statute of limitations is ninety (90) days after your receipt of the rescission offer.
VIRGINIA
In recognition of the requirements of the Virginia Retail Franchising Act, the Disclosure Document, Franchise Agreement and Supplemental Agreements are amended as follow
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, certain limitations on franchise agreement provisions apply specifically to franchisees in Washington, Wisconsin, Rhode Island, and Virginia.
For Washington, the FDD states that any provisions conflicting with the restrictions against franchisors preventing franchisees from soliciting or hiring employees of either the franchisor or other franchisees are void and unenforceable in Washington. Additionally, the claims limitation provision in Section 22.5 of the Franchise Agreement does not apply to Washington franchisees.
For Wisconsin, the Wisconsin Fair Dealership Law supersedes any conflicting provision in the Franchise Agreement and Supplemental Agreements. The Franchise Disclosure Document, the Franchise Agreement, and the Supplemental Agreements are amended accordingly.
For Rhode Island, Itan will not require franchisees to prospectively assent to waivers relieving persons from liability imposed by the Rhode Island Franchise Law, and any provision restricting jurisdiction or venue to a forum outside of Rhode Island, or requiring the application of other states' laws, is void with respect to claims enforceable under the Rhode Island Franchise Law. Itan also will not prohibit franchisees from joining trade associations or retaliate for engaging in these activities. Any provision limiting the time period to assert a legal claim against Itan under the Rhode Island Franchise Law is amended to provide a four-year statute of limitations, except in cases of a rescission offer approved by the Rhode Island director of business registration, where the limit is 90 days after receipt of the offer.
For Virginia, the FDD states that amendments are made in recognition of the requirements of the Virginia Retail Franchising Act.