Under the Itan agreement, what happens to provisions that by their nature survive the transfer of an equity interest in the development business?

According to Itan's 2025 Franchise Disclosure Document, provisions that either expressly state they survive or by their nature are meant to survive the transfer of an equity interest in the development business or developer entity will remain in effect. This continuation applies even after the termination, expiration, or transfer of the agreement. These provisions remain valid until they are either fully satisfied or naturally expire.

Specifically, this survival clause applies without limitation to sections 13, 14, 16, 18, 21, 22, and 24 of the Itan area development agreement. These sections likely cover critical aspects such as intellectual property, confidentiality, dispute resolution, and other clauses designed to protect Itan's interests and maintain standards even after a transfer of ownership.

For a prospective Itan franchisee, this means that certain obligations and responsibilities will continue even if they sell their equity interest in the development business. It is important to carefully review sections 13, 14, 16, 18, 21, 22, and 24 of the area development agreement to understand the specific provisions that will survive such a transfer. This ensures clarity on what responsibilities and liabilities remain even after relinquishing ownership.