What happens if an Itan franchisee's landlord disapproves provisions in the Lease Addendum?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
Lease**.
If you lease the Premises, you must negotiate with your landlord, if necessary, to modify your lease in order to provide you with a term of at least 10 years from the Conversion Date.
You must also cause your landlord to execute our required Lease Addendum.
We may require that you complete these steps prior to execution of the Franchise Agreement and this Addendum.
At a minimum, we may require execution of the Lease Addendum as a condition to us issuing our Certificate of Conversion Completion pursuant to §5 of this Addendum.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must get their landlords to sign Itan's required Lease Addendum. Itan may require franchisees to complete this step before the Franchise Agreement and addendum are executed. At a minimum, Itan may require execution of the Lease Addendum as a condition to them issuing a Certificate of Conversion Completion.
The FDD excerpt does not specifically state what happens if the landlord disapproves provisions in the Lease Addendum.
For a prospective Itan franchisee, it would be prudent to ask the franchisor about the specific procedures or alternatives if a landlord refuses to sign the Lease Addendum or insists on modifications that are unacceptable to Itan. Understanding the flexibility and potential consequences related to lease negotiations is crucial before investing in an Itan franchise.