What happens if I terminate the Itan Franchise Agreement in a manner not permitted by §20.1 or §20.3?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
21. POST-TERM OBLIGATIONS.
- 21.1. Obligations of You and the Owners. After the termination, expiration or Transfer of this Agreement, you and the Owners agree to:
- (a) immediately cease use of the Intellectual Property;
- (b) comply with all post-term covenants described in §14 or a Franchise Owner Agreement;
- (c) cancel all fictitious or assumed name registrations relating to your use of the Marks;
- (d) pay us all amounts you owe including, if applicable, liquidated damages pursuant to §21.3;
- (e) comply with our data retention policies relating to Business Data;
- (f) transfer Customer Data (and, if we so request, assign all customer contracts) to us or our designee;
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a franchisee terminates the Franchise Agreement outside the conditions outlined in §20.1 (termination by franchisee due to Itan's uncured breach) or §20.3 (termination by mutual written agreement), several post-termination obligations come into effect. These obligations are detailed in §21.1 of the agreement.
Specifically, upon termination, expiration, or transfer of the Franchise Agreement, the franchisee and any owners must immediately cease using Itan's intellectual property. They must also comply with all post-term covenants described in §14 or a Franchise Owner Agreement. This includes adhering to non-compete and confidentiality clauses to protect Itan's business interests.
Furthermore, the franchisee is required to cancel all fictitious or assumed name registrations related to the use of Itan's marks. All outstanding amounts owed to Itan must be paid, potentially including liquidated damages as specified in §21.3. The franchisee must also comply with Itan's data retention policies regarding business data and transfer customer data (and potentially assign customer contracts) to Itan or its designee. These post-term obligations are designed to protect Itan's brand, customer relationships, and financial interests after the franchise agreement ends.