How long does Itan have to cure a material breach after receiving a default notice from the franchisee?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.1. By You. You may terminate this Agreement if we fail to cure a material breach within 90 days after you send us a default notice specifying the nature of the breach. If you terminate pursuant to §20.1, you must still comply with your post-term obligations described in §21 (other than payment of liquidated damages) and all other obligations that survive the termination of this Agreement.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if Itan commits a material breach of the franchise agreement, the franchisee must send Itan a default notice specifying the nature of the breach. Itan then has 90 days to cure the material breach after receiving this notice.
If the franchisee terminates the agreement due to Itan's uncured breach, the franchisee must still comply with post-term obligations outlined in the franchise agreement. These obligations include those described in Section 21, with the exception of paying liquidated damages, and all other obligations that survive the termination of the agreement.
This 90-day cure period provides Itan with an opportunity to rectify the situation and maintain the franchise relationship. However, it also means that a franchisee may have to wait up to three months while the breach is addressed, potentially impacting their business operations during that time. Franchisees should carefully document all communications and actions related to the breach and its attempted cure to protect their interests.