What section of the Itan FDD defines 'Excluded Claim'?

According to Itan's 2025 Franchise Disclosure Document, the definition of "Excluded Claim" is found in §22 of the agreement, which pertains to dispute resolution. Specifically, an "Excluded Claim" refers to any claim that, as stated in §22, is not subject to mandatory mediation.

This means that certain types of disputes, particularly those alleging a breach of §14, §17, and/or §21, do not automatically require negotiation or mediation unless both Itan and the franchisee agree to it. This is an important distinction because it outlines the process for resolving conflicts, and it highlights that some claims can proceed directly to litigation without first undergoing mediation.

For a prospective Itan franchisee, understanding what constitutes an "Excluded Claim" is crucial. It clarifies the circumstances under which they might find themselves in court more quickly than expected. It also emphasizes the importance of understanding sections §14, §17, and §21 of the franchise agreement, as breaches of these sections fall under the umbrella of "Excluded Claims." Franchisees should carefully review these sections and seek legal counsel to fully grasp their rights and obligations.