What representation does the Itan franchisee make regarding the franchisor's right to negotiate different terms with other franchisees?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You and the Owners jointly and severally represent and warrant to us that you and the Owners are aware that: (a) other franchisees may operate under different forms of agreement and our obligations and rights with respect to franchisees differs materially in certain circumstances; and (b) we may negotiate terms or offer concessions to other franchisees and we have no obligation to offer you the same or similar negotiated terms or concessions.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, as a franchisee, you and the owners of the franchise acknowledge that Itan may have different agreements with other franchisees. These differences can be significant, affecting Itan's obligations and rights concerning those franchisees.
Specifically, Itan retains the right to negotiate different terms or offer concessions to other franchisees. This means that the terms of your franchise agreement might not be the same as those offered to others.
Furthermore, Itan has no obligation to extend the same or similar negotiated terms or concessions to you. As a prospective franchisee, it is important to understand that Itan is not required to provide you with the same benefits or terms it offers to other franchisees. This clause highlights the importance of carefully reviewing and understanding the terms of your franchise agreement, as they may differ from those of other Itan franchisees.