Which state's laws govern the Itan Franchise Agreement, and which courts have jurisdiction over legal proceedings related to the agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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| 5. | The states, if any, which have refused, by order or otherwise, to register these franchises include the |
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| 6. | The states, if any, which have revoked or suspended the right to offer these franchises include the |
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| 7. | The states, if any, in which the filing of these franchises has been withdrawn include the following: |
ILLINOIS
In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS 705, the Disclosure Document and the Franchise Agreement and Supplemental Agreements are amended as follows:
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- Illinois law shall apply to and govern the Franchise Agreement and Supplemental Agreements.
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- In accordance with Section 4 of the Illinois Franchise Disclosure Act, any provision in the Franchise Agreement and Supplemental Agreements that designated jurisdiction and venue in a forum outside of the State of Illinois is void. However, the Franchise Agreement and Supplemental Agreements may provide for arbitration to take place outside of Illinois.
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- Your rights upon Termination and Non-Renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
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- In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
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- The Franchise Agreement and Supplemental Agreements are amended to state the following:
To the extent that any provision in the Illinois State Addendum is inconsistent with any provision in this Agreement, the provision in the Illinois State Addendum shall control.
INDIANA
In recognition of the requirements of the Indiana Franchise Disclosure Law, IC 23-2-2-2.5, the Franchise Agreement and Supplemental Agreements are amended as follows:
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the governing state law and jurisdiction for legal proceedings depend on the franchisee's location. For franchisees in Illinois, Illinois law governs the Franchise Agreement and Supplemental Agreements. Additionally, any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside of the state. Similarly, for franchisees in Indiana, the Franchise Agreement will be construed in accordance with Indiana law, and any provision designating jurisdiction or venue outside of Indiana is deleted from the agreement. For franchisees in North Dakota, provisions requiring that agreements be governed by the laws of a state other than North Dakota are generally considered unenforceable.
For prospective Itan franchisees, this means that the specific terms of the Franchise Agreement regarding governing law and jurisdiction can vary significantly based on the state in which they operate their franchise. Franchisees should pay close attention to any state-specific addenda to understand how their local laws modify the standard franchise agreement. This is particularly important in states like Illinois, Indiana, and North Dakota, where specific legal protections are in place for franchisees.
It is important for prospective franchisees to consult with a legal professional to fully understand their rights and obligations under the Franchise Agreement, taking into account any state-specific modifications. This will help ensure that franchisees are aware of the legal framework governing their relationship with Itan and can make informed decisions about their investment.