If Itan consents to a transfer, does the transferee still have to comply with all the terms of the Itan franchise agreement?

According to Itan's 2025 Franchise Disclosure Document, when a franchise is transferred with Itan's consent, the new franchisee (transferee) is still required to comply with all the terms of the original franchise agreement. This means that even though the franchise ownership changes, the obligations and responsibilities outlined in the initial agreement remain in effect for the transferee.

This requirement ensures consistency and uniformity across all Itan franchise locations, regardless of ownership. It helps Itan maintain its brand standards and operational procedures. The transferee must adhere to the existing agreement's stipulations, covering aspects like operational standards, marketing requirements, and payment obligations.

For a prospective Itan franchisee, this means understanding that purchasing an existing franchise involves stepping into the shoes of the previous owner regarding the franchise agreement. It's crucial to thoroughly review the existing franchise agreement during due diligence to fully understand the obligations and responsibilities they will be taking on. The transferee may also be required to sign Itan's then-current form of franchise agreement.