Under what condition can Itan assign the Franchise Agreement?

According to Itan's 2025 Franchise Disclosure Document, Itan will not assign the Franchise Agreement except to an assignee who, in Itan's good faith judgment, is willing and able to assume Itan's obligations under the Franchise Agreement. This amendment is specifically included to comply with the New York Franchise Law.

This condition protects franchisees by ensuring that any new franchisor taking over the Itan franchise system has the financial stability and willingness to uphold the promises and obligations outlined in the original Franchise Agreement. It prevents Itan from transferring the agreement to an unqualified party that might not support the franchisees adequately.

This provision is particularly important for prospective Itan franchisees in New York, as it reinforces the protections provided by the New York Franchise Law. It assures them that Itan cannot simply assign the agreement to any entity without considering their ability to fulfill the franchisor's duties. This offers a degree of security and recourse for franchisees in the event of a transfer of ownership.

It is important for potential franchisees to understand this condition, especially those in New York, as it provides an added layer of protection under the New York Franchise Law. Franchisees should still conduct thorough due diligence on the franchisor's financial stability and commitment to supporting its franchisees.