Does Itan have any liability if Third-Party Technology does not function properly?

According to Itan's 2025 Franchise Disclosure Document, Itan bears no liability for issues arising from Third-Party Technology. The FDD defines "Third-Party Technology" as any Technology Systems (or components thereof) that are owned by Persons who are not affiliated with Itan.

Specifically, Itan states that neither they nor their affiliates have any liability to the franchisee for any losses, damages, or expenses incurred as a result of Third-Party Technology not functioning properly. The franchisee agrees to waive any claims against Itan or its affiliates relating to Third-Party Technology.

The document clarifies that the franchisee's sole recourse for any liabilities, losses, damages, or expenses incurred due to improperly functioning Third-Party Technology should be against the owner or licensor of that Third-Party Technology, not against Itan. This means that if a point-of-sale system provided by a third-party vendor malfunctions, causing the franchisee to lose sales data or incur downtime, the franchisee must seek compensation from the vendor, not from Itan.

This arrangement is fairly common in franchising, as franchisors often integrate third-party technologies into their systems but do not directly control those technologies. It is important for prospective Itan franchisees to carefully review the terms and conditions of any Third-Party Technology agreements and ensure they have adequate recourse in case of malfunctions or disruptions.