How is 'permanent disability' defined in the Itan franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **19.4.
Owner Death or Disability.** Within 180 days after an Owner's death or permanent disability, the Owner's Equity Interest in the Business or Franchisee Entity must be Transferred to another Person in compliance with §19.2 or §19.3.
An Owner is deemed to have a "permanent disability" only if he/she has a medical or mental problem preventing him/her from substantially complying with his/her obligations under this Agreement or operating the Business in the manner required by this Agreement and the Manual for a continuous period of at least three (3) months.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a permanent disability is specifically defined within the context of transferring ownership due to an owner's inability to manage the business.
The Itan franchise agreement states that an owner is considered to have a "permanent disability" if they have a medical or mental condition that prevents them from substantially meeting their obligations under the agreement or operating the business as required by the agreement and the manual. This condition must persist continuously for at least three months.
This definition is important because, upon an owner's death or permanent disability, their equity interest in the Itan business or franchisee entity must be transferred to another person within 180 days, adhering to specific transfer conditions outlined in the franchise agreement. This ensures business continuity and compliance with Itan's operational standards, even if the original owner is no longer able to manage the franchise.