Can Itan refuse a transfer if the proposed transferee is unwilling to comply with all lawful obligations?

According to Itan's 2025 Franchise Disclosure Document, Itan can refuse a transfer of ownership if the proposed transferee is unwilling to agree in writing to comply with all lawful obligations. This falls under the "good cause" conditions that allow Itan to refuse a transfer.

This means that if a franchisee attempts to sell their Itan franchise to someone who does not agree to adhere to all legal and contractual requirements, Itan has the right to block the transfer. This provision protects Itan by ensuring that new franchisees are committed to upholding the brand's standards and legal obligations.

For a prospective Itan franchisee, this highlights the importance of finding a suitable and willing buyer if they decide to sell their franchise. It also underscores the need for the franchisee to ensure that any potential buyer is fully aware of and prepared to meet all the legal and contractual obligations associated with operating an Itan franchise. This requirement is a fairly standard practice in franchising, as franchisors typically want to maintain consistent standards and protect their brand by ensuring that all franchisees adhere to the same rules and regulations.