How many days does an Itan franchisee have to discharge a levy of execution on their business property?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- 20.2. By Us. We may terminate this Agreement, effective upon delivery of a notice of termination, for any of the following reasons, all of which constitute material events of default and "good cause" for termination, and without opportunity to cure except for any cure period expressly set forth below:
- (e) if a levy of execution has been made upon the license granted by this Agreement or any property used in your Business and is not discharged within five (5) days of the levy;
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, an Itan franchisee has five days to discharge a levy of execution on their business property. Specifically, if a levy of execution has been made upon the license granted by the Franchise Agreement or any property used in the franchisee's business, the franchisee must discharge it within five days of the levy.
Failure to discharge the levy within this timeframe constitutes a material event of default, which allows Itan to terminate the Franchise Agreement effective immediately upon delivery of a termination notice. This means the franchisee loses the right to operate under the Itan brand and system.
This clause is fairly standard in franchise agreements, as it protects the franchisor's brand and reputation by ensuring franchisees meet their financial obligations and maintain the integrity of the business. Prospective Itan franchisees should be aware of this requirement and ensure they have sufficient financial resources and management practices to avoid such situations.