For a permitted transfer with Itan, how much prior notice must be given to Itan?

According to Itan's 2025 Franchise Disclosure Document, a franchisee may engage in a permitted transfer without prior approval from Itan, provided they give Itan at least 10 days' prior notice. Additionally, upon Itan's request, the former Franchisee Entity must sign a corporate guarantee to secure the financial obligations of the new Franchisee Entity under all Definitive Agreements, if the permitted transfer results in a new Franchisee Entity.

This means that if a franchisee qualifies for a "Permitted Transfer" as defined by Itan, they do not need to seek formal approval. However, they must still inform Itan of the transfer at least 10 days in advance. This notification period allows Itan to prepare for the transfer and request necessary documentation, such as a corporate guarantee from the former franchisee entity, ensuring the financial stability of the franchise continues under new ownership.

It is important for prospective Itan franchisees to understand the conditions that qualify as a "Permitted Transfer" and the specific requirements for providing notice. Failure to comply with these requirements could result in the transfer being deemed invalid or a breach of the franchise agreement. Franchisees should carefully review the franchise agreement to fully understand their obligations and ensure a smooth transfer process.