Does Itan's right of first refusal apply to Permitted Transfers?

According to Itan's 2025 Franchise Disclosure Document, Itan's right of first refusal does not apply to a Permitted Transfer. However, even with a Permitted Transfer, the franchisee must still provide Itan with at least 10 days' prior notice. Additionally, Itan may request that the former Franchisee Entity sign a corporate guarantee to secure the performance of the new Franchisee Entity's financial obligations under all Definitive Agreements if the Permitted Transfer results in a new Franchisee Entity.

It is important to understand what constitutes a Permitted Transfer under the Itan franchise agreement, as this will determine whether or not the franchisor's right of first refusal is waived. If a transfer does not qualify as a Permitted Transfer, Itan retains the right to purchase the franchise under the same terms and conditions offered by a third-party buyer.

This condition regarding Permitted Transfers allows franchisees more flexibility in transferring their business in certain situations, as they do not have to wait for Itan to decide whether or not to exercise its right of first refusal. However, franchisees must still adhere to the notification and corporate guarantee requirements to ensure compliance with the franchise agreement.