When does the survival provision of the Itan agreement expire?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
All provisions that expressly or by their nature survive the termination, expiration or Transfer of this Agreement, or the Transfer of an ownership interest in the Salon or Franchisee Entity, shall continue in full force and effect subsequent to and notwithstanding its termination, expiration or Transfer and until they are satisfied in full or by their nature expire, including, without limitation, §13, §14, §16, §18, §21, §22 and §24.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the survival provision within the franchise agreement remains in effect after the termination, expiration, or transfer of the agreement. These provisions continue until they are either fully satisfied or naturally expire. This includes specific sections of the agreement such as §13, §14, §16, §18, §21, §22 and §24.
For a prospective Itan franchisee, this means that certain obligations and rights outlined in the agreement will extend beyond the initial term of the franchise. These 'survival' clauses typically cover aspects like confidentiality, non-compete agreements, and payment obligations. Understanding which specific clauses survive and their implications is crucial, as they can significantly impact a franchisee's activities after the franchise relationship ends.
It is important for potential Itan franchisees to carefully review sections §13, §14, §16, §18, §21, §22 and §24 of the franchise agreement to fully understand the nature and extent of their post-termination obligations. Consulting with a legal professional can help clarify these provisions and ensure the franchisee is aware of their responsibilities even after the franchise agreement concludes.