What is Itan's policy on warranties or representations regarding goods or services purchased from system suppliers?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
If you have any type of Claim relating to the purchase of goods or services from a system supplier, your sole recourse shall be against the supplier.
If we or our affiliate are the supplier, your sole recourse shall be against the manufacturer or supplier from whom we or our affiliate acquired the goods unless both: (i) the Claim arises from our (or our affiliate's) failure to supply the
goods in breach of our obligations under this Agreement; and (ii) our (or our affiliate's) failure to supply the goods is not caused by a Force Majeure event. We and our affiliates make no warranties or representations and expressly disclaim all warranties and representations, including the implied warranties of merchantability and fitness for a particular purpose, with respect to goods or services you purchase from system suppliers.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan makes no warranties or representations regarding goods or services franchisees purchase from system suppliers. Itan expressly disclaims all warranties and representations, including the implied warranties of merchantability and fitness for a particular purpose. This means that if a franchisee has any claim relating to the purchase of goods or services from a system supplier, the franchisee's sole recourse is against that supplier, not Itan.
However, there is an exception to this policy. If Itan or its affiliate is the supplier, the franchisee's sole recourse is against the manufacturer or supplier from whom Itan or its affiliate acquired the goods. This exception does not apply if the claim arises from Itan's (or its affiliate's) failure to supply the goods in breach of their obligations under the Franchise Agreement, and this failure is not caused by a Force Majeure event.
This policy has significant implications for prospective Itan franchisees. It means that franchisees bear the risk of defective goods or substandard services provided by system suppliers. Franchisees need to carefully evaluate the reputation and reliability of Itan's approved suppliers before making purchases. It also highlights the importance of understanding the terms and conditions of purchase agreements with these suppliers, as the franchisee's recourse is limited to the supplier in most cases. Franchisees should also be aware of what constitutes a Force Majeure event, as this could impact Itan's liability in certain situations.