Under what condition can an Itan franchisee agree to conduct arbitration outside of their state?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (f) A provision requiring that arbitration or litigation be conducted outside this state.
This shall not preclude the franchisee from entering into an agreement, at the time of arbitration, to conduct arbitration at a location outside this state.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, a franchisee is not initially required to conduct arbitration or litigation outside of their state. However, an Itan franchisee can agree to conduct arbitration at a location outside of their state. This agreement must be made at the time of the arbitration proceedings.
This means that while the initial franchise agreement might stipulate that arbitration should occur within the franchisee's state, the franchisee has the option to change this arrangement later. This provides some flexibility for the franchisee if, for example, a more convenient or suitable arbitration location becomes available.
It is important for prospective Itan franchisees to understand this provision, as it allows for potential negotiation regarding the location of arbitration. Franchisees should carefully consider the implications of agreeing to arbitration outside of their state, including potential travel costs and legal representation issues.