Who is responsible for the representations and warranties made in the Itan franchise agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Any representations not specifically contained in this Agreement made before entering into this Agreement do not survive after the signing of this Agreement.
Nothing in this Agreement is intended to disclaim any of the representations we made in the Franchise Disclosure Document.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (a) waiving any claims under any applicable state franchise law, including fraud in the inducement or (b) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to the 2025 Itan Franchise Disclosure Document, Itan Franchising, Inc. is responsible for the representations made in the Franchise Disclosure Document. Specifically, any representations not contained within the franchise agreement do not survive the signing of the agreement. However, the franchise agreement does not disclaim any representations made by Itan in the Franchise Disclosure Document.
This means that any promises, claims, or assurances made by Itan outside of the formal, signed franchise agreement may not be legally binding after the agreement is signed. It is important for a prospective franchisee to ensure that all important representations made by Itan during the pre-sale process are included in the written agreement to ensure they are enforceable.
Furthermore, no statement, questionnaire, or acknowledgment signed by the franchisee can waive claims under state franchise law, including fraud, or disclaim reliance on statements made by Itan or anyone acting on their behalf. This protects the franchisee from inadvertently giving up their legal rights based on something they signed during the franchise commencement.
This type of clause is fairly standard in franchise agreements to protect both parties. It ensures that the written contract is the final and complete agreement, while also preventing the franchisor from using waivers to avoid liability for misrepresentations.