If an Itan franchisee (or an Owner) is subject to a material administrative disciplinary action, can Itan terminate the franchise agreement?

The 2025 Itan Franchise Disclosure Document does not explicitly state whether Itan can terminate the franchise agreement if a franchisee or owner is subject to a material administrative disciplinary action. However, the FDD does state that a franchisor can terminate a franchise prior to the expiration of its term for good cause. Good cause includes the failure of the franchisee to comply with any lawful provision of the franchise agreement and failure to cure such failure after being given written notice and a reasonable opportunity to cure such failure, which need not be more than 30 days.

Because the FDD does not specifically address administrative disciplinary actions, it is important for a prospective franchisee to understand what constitutes "good cause" for termination under the Itan franchise agreement. This includes clarifying whether a material administrative disciplinary action against a franchisee or owner would be considered a failure to comply with a lawful provision of the agreement.

To gain a comprehensive understanding, a prospective Itan franchisee should ask the franchisor for specific examples of actions or events that could lead to termination. They should also inquire about the procedures and timelines involved in the termination process, ensuring they are fully aware of their rights and obligations under the franchise agreement.