For Itan, what is the scope of the 'Dispute' definition?

According to Itan's 2025 Franchise Disclosure Document, a 'Dispute' is defined broadly as any Claim, dispute, or disagreement between Itan and the franchisee. This includes any matter pertaining to the interpretation or enforcement of the franchise agreement, issues related to the offer or sale of the franchise itself, and any aspect of the relationship between Itan and the franchisee. This definition appears in the context of dispute resolution procedures outlined in the franchise agreement.

This broad definition means that virtually any disagreement that arises between an Itan franchisee and the franchisor could be subject to the dispute resolution process outlined in the franchise agreement, which includes negotiation, mediation, and potentially litigation. Franchisees should be aware that this definition encompasses a wide range of potential issues, from contractual disagreements to matters concerning the franchise relationship itself.

It is important to note that certain claims, referred to as 'Excluded Claims' and involving a breach of specific sections (§14, §17 and/or §21), are not subject to mandatory negotiation or mediation unless both parties agree otherwise. This means that Itan can pursue litigation for these specific breaches without first attempting negotiation or mediation, potentially accelerating the legal process in those cases. Prospective franchisees should carefully review these 'Excluded Claims' to understand the specific circumstances under which Itan might directly pursue litigation.