What is the relationship between the Itan Franchise Agreement and the Supplemental Agreements?

According to Itan's 2025 Franchise Disclosure Document, the Supplemental Agreements are related to the Franchise Agreement. Specifically, when the term "Supplemental Agreements" is used, it refers to any area development agreement, area representative agreement, master franchise agreement, or similar agreement entered into between Itan and the franchisee, if applicable.

Several clauses within the Franchise Agreement and Supplemental Agreements may be subject to specific state laws, such as those in California, Indiana, and Washington. For example, in California, provisions restricting venue to a forum outside the state, those allowing termination upon bankruptcy, those containing covenants not to compete extending beyond the franchise term, and certain liquidated damages clauses may not be enforceable. Similarly, in Indiana, the laws of the State of Indiana supersede any conflicting provisions in the Disclosure Document, Franchise Agreement, and Supplemental Agreements, and these agreements are to be construed in accordance with Indiana law.

In Washington, the arbitration or mediation site for disputes involving a franchise purchased in Washington will be either in the state of Washington or a place mutually agreed upon. Additionally, noncompetition covenants are void and unenforceable against an employee of a franchisee unless the employee's earnings exceed $100,000 per year (adjusted annually for inflation) or against an independent contractor of a franchisee unless their earnings exceed $250,000 per year (adjusted annually for inflation). These state-specific regulations may supersede the terms outlined in the Franchise Agreement and Supplemental Agreements to protect the franchisee's rights and ensure compliance with local laws.