factual

If Itan consents to a transfer, does this waive any claims Itan has against the transferor?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

Our consent to a Transfer shall not constitute a waiver of any Claims we have against the transferor or our right to demand the transferee comply with all terms of the franchise agreement.

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, Itan's consent to a transfer of the franchise does not constitute a waiver of any claims that Itan may have against the transferor. Itan also retains the right to demand that the transferee comply with all the terms of the franchise agreement.

This means that even if Itan approves the transfer of a franchise to a new owner, Itan still maintains the right to pursue any existing claims against the original franchisee (the transferor). This could include claims related to unpaid fees, breaches of contract, or any other issues that arose during the original franchisee's tenure.

For a prospective Itan franchisee, this clause highlights the importance of fulfilling all obligations under the franchise agreement. Even if they plan to sell the franchise in the future, they remain liable for any outstanding issues unless Itan explicitly waives those claims in writing. This provision protects Itan's interests and ensures that franchisees cannot escape their responsibilities by simply transferring the franchise to someone else.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.