If Itan decides to purchase the interest in a franchise transfer, how long does Itan have to prepare for closing?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **19.5.
Our Right of First Refusal.** If you or an Owner wish to engage in a Transfer, you or the Owner, as applicable, must obtain and send us a bona-fide offer executed by the purchaser after completion of due diligence.
We have 30 days after receiving the offer to decide whether to purchase the interest for the same price and upon the same terms contained in the offer, except we may substitute cash for any non-cash form of payment proposed in the offer.
If we notify you within the 30-day period that we intend to purchase the interest, you or the Owner, as applicable, must sell the interest to us.
We will have an additional 60 days to prepare for closing.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if a franchisee or owner wishes to transfer their interest, they must first obtain a bona-fide offer from a purchaser after due diligence and send it to Itan. Itan then has 30 days to decide whether to purchase the interest themselves, matching the price and terms of the offer, although Itan can substitute cash for any non-cash payments proposed in the offer.
If Itan decides to purchase the interest, they must notify the franchisee or owner within that 30-day period, and the franchisee or owner is then obligated to sell the interest to Itan. Following this notification, Itan has an additional 60 days to prepare for closing the purchase.
Therefore, from the time Itan notifies the franchisee of its intent to purchase the interest, Itan has 60 days to prepare for the closing. This timeframe allows Itan to arrange financing, conduct any further due diligence, and finalize the necessary legal and administrative steps to complete the purchase.