For Itan, what is required for subsequent modifications to the agreement to be binding between the parties?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Modification. This Addendum and the Franchise Agreement when executed constitute the entire agreement and understanding between the Parties with respect to the subject matter contained herein and therein. Any and all prior agreements and understandings between the Parties and relating to the subject matter contained in this Addendum and the Franchise Agreement, whether written or verbal, other than as contained within the executed Addendum and Franchise Agreement, are void and have no force and effect. In order to be binding between the Parties, any subsequent modifications must be in writing signed by the Parties.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, any modifications to the franchise agreement must be in writing and signed by all parties involved to be considered binding. This requirement ensures that all changes are formally documented and agreed upon, preventing misunderstandings or disputes based on verbal agreements or informal communications. This applies to the Franchise Agreement as well as the Conversion Addendum.
This provision is a standard practice in franchising, as it provides a clear and enforceable record of any changes to the original agreement. Franchisees should be aware that any verbal promises or assurances from Itan representatives that are not documented in writing and signed are not legally binding. It is crucial for franchisees to ensure that all modifications, waivers, or approvals are documented in writing to protect their interests.
This requirement for written modifications also applies to approvals required under the agreement. Specifically, Itan's approval must be in writing to be binding. This means that if a franchisee needs approval from Itan for any reason, such as site selection or operational changes, the franchisee must obtain written confirmation of that approval. Failure to obtain written approval could result in the franchisee acting without proper authorization, potentially leading to breaches of the franchise agreement.