Where must legal proceedings arising out of the Itan Area Development Agreement be brought?

According to Itan's 2025 Franchise Disclosure Document, any legal proceedings arising out of the Area Development Agreement must be brought in a court of competent jurisdiction in San Diego County, California. The agreement is governed by the laws of California. This means that if Itan or the franchisee initiates a lawsuit related to the Area Development Agreement, the case must be filed and litigated in San Diego County, California, regardless of where the franchisee's business is located.

This clause specifies that California law governs the agreement, which provides a legal framework for interpreting the contract and resolving disputes. It also ensures that both parties are subject to the same legal standards. By agreeing to this, franchisees are waiving their right to bring legal action in their home state, which could potentially increase their costs if they need to travel to San Diego County for court proceedings.

It is important for prospective Itan franchisees to understand the implications of this venue and governing law provision. They should consider the potential costs and inconveniences associated with litigating in San Diego County, California, should a dispute arise. Franchisees should consult with a legal professional to fully understand their rights and obligations under the Area Development Agreement, particularly concerning dispute resolution and legal proceedings.