Does an Itan tenant need the landlord's consent to assign the lease to Itan?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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- Right to Assign. At any time, including, without limitation, upon the expiration or termination of the Franchise Agreement, and without Landlord's prior consent, Tenant may assign the Lease to Franchisor. In such event, Franchisor may thereafter assign the Lease to another iTAN franchisee or to an entity owned and/or controlled by Franchisor. If it does, Franchisor must first obtain Landlord's written approval of the assignee. Landlord, however, must neither unreasonably withhold nor delay its approval thereof. Landlord will acknowledge any such assignment in writing. No assignment permitted under this Section is subject to any assignment or similar fee or will cause any rental acceleration.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a tenant (franchisee) can assign their lease to Itan without the landlord's prior consent under specific conditions. Specifically, this is allowed at any time, including upon the expiration or termination of the Franchise Agreement.
However, if Itan then wants to assign the lease to another iTAN franchisee or an entity they own or control, Itan must first obtain the landlord's written approval. The landlord is obligated to not unreasonably withhold or delay this approval and must acknowledge the assignment in writing. This provision protects Itan's interests while also ensuring the landlord has a say in who ultimately occupies the premises.
This arrangement benefits the Itan franchisee by providing flexibility in transferring the lease back to Itan, especially if the franchisee decides to exit the business. It also benefits Itan by allowing them to maintain control over the location and potentially reassign it to another franchisee. The requirement for landlord approval for subsequent assignments ensures a balance of power and protects the landlord's investment.