Under the Itan agreement, what constitutes a material event of default under the Franchise Agreement?

According to Itan's 2025 Franchise Disclosure Document, a franchisee's breach of the Guaranty Agreement constitutes a material event of default under the Franchise Agreement. This allows Itan to terminate the Franchise Agreement based on the terms outlined within it.

This means that if a franchisee, or any guarantor on their behalf, violates the terms of the Guaranty Agreement, Itan has the right to end the franchise relationship. The Guaranty Agreement ensures that the franchisee's obligations are secured, and a breach indicates a failure to meet those secured obligations.

For a prospective Itan franchisee, this highlights the importance of understanding and adhering to all agreements, including the Guaranty Agreement. Breaching this agreement can have severe consequences, including the termination of the franchise. Franchisees should carefully review all terms and seek legal counsel if needed to fully grasp their obligations and potential risks.