What are the two time periods during which an Itan franchisee may not engage in any Prohibited Activities?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not engage in any Prohibited Activities at any time: (i) that you are (or your spouse is) an Owner; or (ii) during the Restricted Period.
Notwithstanding the foregoing, you may have an interest in a Competing Business during the Restricted Period as long as the Competing Business is not located in the Restricted Territory.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, there are two specific times when a franchisee is prohibited from engaging in what the agreement terms 'Prohibited Activities.' These restricted periods are designed to protect Itan's brand and business interests.
First, an Itan franchisee (or their spouse) cannot engage in any Prohibited Activities at any time that they are an owner. This means that as long as someone is an owner of the Itan franchise, they are bound by these restrictions.
Second, the franchisee is restricted during the 'Restricted Period.' The FDD defines the Restricted Period as the two-year period after the termination or expiration of the Franchise Agreement; the date the Franchise Agreement is assigned to another person in whom neither the franchisee nor their spouse owns an equity interest; or the date neither the franchisee nor their spouse owns an equity interest in the business or Franchisee Entity. Note that if a court deems the two-year period too long to be enforceable, the Restricted Period becomes one year.