For Itan, if the Addendum modifies or supplements the Franchise Agreement, what happens to the terms and conditions set forth in the Franchise Agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Effect on Agreement. Except as specifically modified or supplemented by this Addendum, all terms and conditions set forth in the Franchise Agreement shall remain in full force and effect.
- (c) Inconsistency. In the event of any inconsistency between the executed Franchise Agreement and this Addendum, this Addendum shall prevail.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the terms and conditions outlined in the Franchise Agreement remain fully effective, except when the Addendum specifically modifies or supplements them. This means that the original Franchise Agreement is the primary document governing the relationship between Itan and the franchisee. However, the Addendum serves to make specific changes or additions to that agreement.
In cases where there is an inconsistency between the Franchise Agreement and the Addendum, the Addendum takes precedence. This ensures that the most recently agreed-upon terms are those that govern the franchise relationship. This is a common practice in franchising, as addenda are often used to update or clarify specific aspects of the agreement without requiring a complete rewrite.
For a prospective Itan franchisee, it is crucial to carefully review both the Franchise Agreement and any Addenda to fully understand their rights and obligations. Paying close attention to any inconsistencies and understanding that the Addendum will prevail in those situations is essential for a successful franchise relationship.