Who is included in the definition of 'Franchisor Parties' when releasing claims against Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Owner, you, and each of your officers, directors, shareholders, members, owners, employees, agents, representatives, affiliates, parents, divisions, successors and assigns, and all persons or firms claiming by, through, under, or on behalf of any or all of them (the "Franchisee Parties"), hereby release, acquit and forever discharge us, any and all of our past and present affiliates, parents, subsidiaries and related companies, divisions and partnerships, consultants, advisors and franchise sellers and its and their respective past and present officers, directors, shareholders, members, owners, employees, agents, representatives, affiliates, parents, divisions, successors and assigns, and the spouses of such individuals (collectively, the "Franchisor Parties"), from any and all claims, liabilities, damages, expenses, actions or causes of action which any of the Franchisee Parties may now have or has ever had, whether known or unknown, past or present, absolute or contingent, suspected or unsuspected, of any nature whatsoever, directly or indirectly arising out of or relating to the execution and performance (or lack thereof) of the Franchise Agreement or the offer, sale or acceptance of the franchise related thereto (including, but not limited to any disclosures and representations made in connection therewith). The foregoing release shall not be construed to apply with respect to any obligations contained within this Agreement.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the 'Franchisor Parties' encompass a wide range of entities and individuals associated with Itan. This includes Itan itself, along with its past and present affiliates, parents, subsidiaries, related companies, divisions, and partnerships. The definition extends to consultants, advisors, franchise sellers, and their respective past and present officers, directors, shareholders, members, owners, employees, agents, representatives, affiliates, parents, divisions, successors, and assigns. It also includes the spouses of such individuals.
This broad definition means that when a franchisee signs a release, they are waiving their rights to bring claims against a large group of people and entities connected to Itan. This is a significant point for prospective franchisees to consider, as it limits their legal recourse in case of disputes or issues arising from the franchise agreement. The release covers any and all claims, known or unknown, that the franchisee may have against the Franchisor Parties, relating to the franchise agreement.
It is important to note that this release does not apply to obligations contained within the Franchise Agreement itself. Additionally, for franchisees in Washington, the General Release does not apply to claims arising under the Washington Franchise Investment Protection Act. Prospective franchisees should carefully review the release and understand its implications before signing any agreements with Itan. Consulting with a legal professional is advisable to fully grasp the scope of the release and its potential impact on their rights.