If the lease for an Itan premises is terminated due to the franchisee's default, can Itan terminate the franchise agreement?

According to Itan's 2025 Franchise Disclosure Document, Itan has the right to terminate the franchise agreement if the franchisee's premises lease is terminated due to the franchisee's default. This is explicitly stated as one of the reasons for which Itan may terminate the agreement.

This provision is significant for prospective Itan franchisees because it links the viability of their franchise to their lease obligations. If a franchisee fails to meet the terms of their lease agreement, leading to its termination, Itan can then terminate the franchise agreement, effectively ending the franchisee's right to operate the Itan business.

It is important for franchisees to understand and manage their lease obligations diligently to avoid default and potential termination of their franchise agreement. This clause underscores the importance of maintaining a good relationship with the landlord and adhering to all lease terms. Franchisees should seek legal counsel to fully understand their rights and obligations under both the franchise agreement and the lease agreement.