What are the post-term obligations of the franchisee and owners after termination, expiration, or transfer of the Itan franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
21. POST-TERM OBLIGATIONS.
- 21.1. Obligations of You and the Owners. After the termination, expiration or Transfer of this Agreement, you and the Owners agree to:
- (a) immediately cease use of the Intellectual Property;
- (b) comply with all post-term covenants described in §14 or a Franchise Owner Agreement;
- (c) cancel all fictitious or assumed name registrations relating to your use of the Marks;
- (d) pay us all amounts you owe including, if applicable, liquidated damages pursuant to §21.3;
- (e) comply with our data retention policies relating to Business Data;
- (f) transfer Customer Data (and, if we so request, assign all customer contracts) to us or our designee;
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, both the franchisee and the owners have specific obligations that must be met after the franchise agreement is terminated, expires, or is transferred. These obligations are detailed in Section 21.1 of the agreement.
Specifically, franchisees and owners must immediately stop using Itan's intellectual property. They must also adhere to all post-term covenants outlined in Section 14 or a Franchise Owner Agreement. This may include non-compete clauses that restrict their ability to engage in similar businesses for a certain period. Franchisees and owners are also required to cancel any assumed name registrations related to their use of Itan's trademarks.
Financially, franchisees must pay all outstanding amounts owed to Itan, which may include liquidated damages as specified in Section 21.3. They must also comply with Itan's data retention policies regarding business data and transfer all customer data (and assign customer contracts, if requested) to Itan or its designee. These post-term obligations are designed to protect Itan's brand and customer relationships after a franchise ceases operation.