Is Itan obligated by agreements made by the franchisee that are not expressly authorized by the Itan franchise agreement?

According to Itan's 2025 Franchise Disclosure Document, Itan is not obligated by any agreements or representations made by the franchisee that are not expressly authorized by the franchise agreement. This means that franchisees cannot make agreements or representations on behalf of Itan unless they have explicit permission to do so within the franchise agreement.

This provision protects Itan from being held liable for unauthorized actions or commitments made by its franchisees. It ensures that Itan maintains control over its brand and business practices, and that franchisees operate within the bounds of the agreed-upon terms. For a prospective franchisee, this highlights the importance of understanding the scope of their authority and the limitations on their ability to represent Itan.

This type of clause is common in franchise agreements to clearly define the relationship between the franchisor and franchisee as independent entities. It helps to avoid potential legal disputes and misunderstandings regarding who is responsible for various aspects of the business. Franchisees should be aware that exceeding their authorized powers could result in breaches of the franchise agreement and potential legal consequences.