What other remedies are available to Itan in addition to those under the agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 5. BREACH. You agree that: (a) any failure to comply with this Agreement is likely to cause substantial and irreparable damage to us and/or other franchisees for which there is no adequate remedy at law; and (b) we are entitled to injunctive relief if you breach this Agreement together with any other relief available at equity or law. We will notify you if we intend to seek injunctive relief but we need not post a bond. If a court requires that we post a bond despite our mutual agreement to the contrary, the bond amount may not exceed $1,000. No remedy available to us under this Agreement is exclusive of any other, but may be combined with others under this Agreement, or at law or in equity, including injunctive relief, specific performance and recovery of monetary damages.
6. MISCELLANEOUS.
- (a) If we hire an attorney or file suit against you for breach of this Agreement and we prevail, you must reimburse us for our reasonable attorneys' fees and costs.
- (b) This Agreement is governed by the laws o
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan has several remedies available in addition to those listed in the franchise agreement. These remedies are cumulative and can be combined with others available under the agreement, at law, or in equity. This means Itan isn't limited to a single course of action if a franchisee breaches the agreement.
Specifically, Itan can pursue injunctive relief, which is a court order requiring the franchisee to stop a certain action, such as violating a non-compete clause. Itan can also seek specific performance, which compels the franchisee to fulfill their obligations under the agreement. Additionally, Itan can recover monetary damages to compensate for financial losses resulting from the franchisee's breach.
The FDD also states that if Itan hires an attorney or files suit against a franchisee for breach of the agreement and prevails, the franchisee must reimburse Itan for reasonable attorney's fees and costs. This provision further strengthens Itan's position in enforcing the franchise agreement and deterring franchisees from non-compliance. Itan will notify you if they intend to seek injunctive relief but they need not post a bond. If a court requires that Itan post a bond despite their mutual agreement to the contrary, the bond amount may not exceed $1,000.
These remedies provide Itan with significant legal recourse to protect its brand, system standards, and financial interests. Prospective franchisees should understand the breadth of these remedies and the potential financial consequences of breaching the franchise agreement.