Which provisions of the Itan agreement survive termination of the agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
All provisions that expressly or by their nature survive the termination, expiration or Transfer of this Agreement, or the Transfer of an ownership interest in the Salon or Franchisee Entity, shall continue in full force and effect subsequent to and notwithstanding its termination, expiration or Transfer and until they are satisfied in full or by their nature expire, including, without limitation, §13, §14, §16, §18, §21, §22 and §24.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, certain provisions within the franchise agreement will remain in effect even after the agreement is terminated, expires, or is transferred. These are provisions that either explicitly state they survive termination or are of a nature that necessitates their continuation. Specifically, Sections 13, 14, 16, 18, 21, 22, and 24 of the agreement are listed as examples of clauses that survive termination. These sections remain in full effect until they are completely fulfilled or naturally expire.
For a prospective Itan franchisee, this means that obligations and rights outlined in those sections (13, 14, 16, 18, 21, 22, and 24) will continue to apply even after the franchise agreement ends. This could include post-term covenants, financial obligations, or clauses related to intellectual property. It is important for franchisees to understand these specific sections to know what responsibilities and rights they will still have after the franchise term concludes.
This is a fairly standard practice in franchising, as it protects the franchisor's brand and ensures certain obligations, such as non-compete agreements or confidentiality, are upheld even after the franchisee exits the system. Franchisees should carefully review these sections with legal counsel to fully understand their post-termination obligations and how they might impact their future business activities.