What happens if the Itan franchisee violates any applicable law?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
The rights of the parties under this Agreement are cumulative and no exercise or enforcement by either party of any right or remedy under this Agreement will preclude any other right or remedy available under this Agreement or by Law.
You agree that: (a) any failure to comply with this Agreement is likely to cause substantial and irreparable damage to us and/or other franchisees for which there is no adequate remedy at law; and (b) we are entitled to injunctive relief if you breach this Agreement together with any other relief available at equity or law.
We will notify you if we intend to seek injunctive relief but we need not post a bond.
If a court requires that we post a bond despite our mutual agreement to the contrary, the bond amount may not exceed $1,000.
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.
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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
Based on the 2025 Itan Franchise Disclosure Document, the rights and remedies available to both Itan and the franchisee are cumulative. This means that if a franchisee violates any applicable law, Itan can exercise any right or remedy available to them under the Franchise Agreement, as well as any other rights or remedies available by law. The exercise of one right or remedy does not prevent Itan from pursuing any other available options.
According to the FDD, Itan can seek injunctive relief if a franchisee breaches the agreement, as any failure to comply with the agreement is likely to cause substantial and irreparable damage to Itan and/or other franchisees, for which there is no adequate remedy at law. Itan is not required to post a bond if they intend to seek injunctive relief; however, if a court requires a bond, the bond amount may not exceed $1,000.
In Washington state, any provisions in the franchise agreement that conflict with specific state laws are void and unenforceable. For example, Itan cannot restrict a franchisee from soliciting or hiring employees of another Itan franchisee or Itan itself. Additionally, the claims limitation provision in the Franchise Agreement does not apply to Washington franchisees. Similarly, in Wisconsin, the Wisconsin Fair Dealership Law supersedes any conflicting provision in the Franchise Agreement and Supplemental Agreements.