If the Itan franchisee is an entity, what must they represent regarding their organization and standing?

According to Itan's 2025 Franchise Disclosure Document, if the franchisee is a business entity, both the entity and its owners must jointly and severally represent and warrant certain aspects of the entity's legal standing to Itan. Specifically, the franchisee entity must represent that it is properly organized, validly existing, and in good standing under the laws of the state where it was formed. This means the entity has been legally established and is compliant with all applicable regulations in its state of formation.

Furthermore, the entity must have the necessary power and authority to enter into the Franchise Agreement and fulfill its obligations as outlined in the agreement. This ensures that the entity has the legal capacity to make binding commitments. The execution and delivery of the Franchise Agreement must be duly authorized by all required corporate actions, indicating that the entity's internal processes have been followed to approve the agreement.

Finally, the Franchise Agreement must constitute a legal, valid, and binding obligation of the franchisee entity, enforceable against it according to the terms specified in the agreement. This ensures that Itan has a legally sound agreement with the franchisee entity, providing recourse if the franchisee fails to meet its obligations. These representations and warranties are standard practice in franchising to ensure the stability and legal standing of the franchisee.