When are payments due to Itan, unless otherwise specified?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
in this Agreement in a timely manner as if fully set forth in §13. You also agree to promptly pay us an amount equal to all taxes levied or assessed against us based on goods or services you sell or goods or services we furnish to you, excluding income taxes imposed on us based on fees you pay us under this Agreement.
- 13.4. Due Date & Late Fee. Payments are due 10 days after invoicing unless otherwise specified. If any sum due under this Agreement is not received by us when due or there are insufficient funds in your Account to cover the sum when due, then in addition to this sum you must pay us $100 plus default interest on the amount past due at a rate equal to the lesser of 18% per annum (pro-rated on a daily basis) or the highest rate permitted by applicable Law. We will not impose a late fee for any amount paid pursuant to §13.5 if, but only to the extent that, sufficient funds were available in your Account to be applied towards the p
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, payments are generally due 10 days after the invoice date, unless otherwise specified in the agreement. If a payment is not received on time, or if there are insufficient funds to cover the payment, Itan may charge a $100 fee plus default interest. The default interest rate will be the lesser of 18% per annum or the highest rate permitted by law.
Itan requires franchisees to authorize electronic debits from their account for amounts owed. Franchisees must complete and submit a signed ACH Agreement within 15 days of the effective date of the agreement. Franchisees are also responsible for ensuring that sufficient funds are available in the designated account before each payment due date.
It is important to note that Itan may assess a late fee if a franchisee fails to record sales or submit gross sales reports in a timely manner, making it impossible to determine the amount due. However, Itan will not impose a late fee if sufficient funds were available in the franchisee's account when the payment was due, provided that the franchisee accurately reported sales in a timely manner. Franchisees should be aware of these payment terms and ensure timely payments to avoid penalties and maintain a good financial standing with Itan.