Under what circumstances are you presumed to have breached the Itan agreement regarding Confidential Information?

According to Itan's 2025 Franchise Disclosure Document, a franchisee is presumed to have breached the confidentiality agreement under specific circumstances involving their immediate family members. The agreement recognizes the potential for a franchisee to circumvent the confidentiality obligations by disclosing confidential information to close family, such as parents, siblings, children, or grandchildren. Due to the difficulty Itan might face in proving such a breach, the agreement stipulates that certain actions by these family members will trigger a presumption that the franchisee violated the agreement.

Specifically, a franchisee is presumed to have breached the agreement if an immediate family member either engages in a prohibited activity during a time when the franchisee is restricted from doing so, or if the family member uses or discloses confidential information. This presumption places the burden on the franchisee to demonstrate that they did not, in fact, disclose confidential information to the family member.

It is important to note that the franchisee has the opportunity to rebut this presumption. The franchisee can present evidence to conclusively prove that they did not disclose confidential information to the family member in question. This provision acknowledges that while family members' actions can raise suspicion, it is possible the franchisee maintained confidentiality and the family member obtained the information independently.

This clause highlights the importance Itan places on protecting its confidential information and the measures it takes to prevent unauthorized disclosure, even through indirect means. Prospective franchisees should understand these stipulations and ensure they take appropriate steps to safeguard confidential information within their families to avoid potential breaches of the franchise agreement.