How can you rebut the presumption that you breached the Itan agreement by disclosing Confidential Information to a family member?

According to Itan's 2025 Franchise Disclosure Document, if an immediate family member (parent, sibling, child, or grandchild) engages in prohibited activities or uses/discloses confidential information, the franchisee is presumed to have breached the agreement. This presumption exists because Itan recognizes that franchisees could easily circumvent the agreement by sharing confidential information with family, and such breaches would be difficult for Itan to prove directly.

However, the franchisee has the opportunity to rebut this presumption. To do so, the franchisee must present evidence that conclusively demonstrates they did not, in fact, disclose confidential information to the family member. The FDD does not specify what form this evidence must take, but it must be strong enough to convince Itan that no unauthorized disclosure occurred.

This clause highlights the importance of maintaining strict confidentiality, not only personally but also within the franchisee's immediate family. Itan places the burden of proof on the franchisee to demonstrate their innocence if a family member acts in a way that suggests confidential information was leaked. Prospective franchisees should carefully consider this provision and ensure they have measures in place to prevent any potential disclosures, even unintentional ones, to family members.