Under what condition might Itan require the Lease Addendum to be executed before the Franchise Agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- **3.
Lease**.
If you lease the Premises, you must negotiate with your landlord, if necessary, to modify your lease in order to provide you with a term of at least 10 years from the Conversion Date.
You must also cause your landlord to execute our required Lease Addendum.
We may require that you complete these steps prior to execution of the Franchise Agreement and this Addendum.
At a minimum, we may require execution of the Lease Addendum as a condition to us issuing our Certificate of Conversion Completion pursuant to §5 of this Addendum.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan may require a prospective franchisee to complete certain leasing steps before the Franchise Agreement and Conversion Addendum are executed. Specifically, if a franchisee leases their premises, Itan may require them to negotiate with their landlord to ensure the lease term is at least 10 years from the Conversion Date.
Itan may also require the landlord to execute Itan's required Lease Addendum before the Franchise Agreement and Conversion Addendum are signed. At a minimum, Itan may require execution of the Lease Addendum as a condition to Itan issuing its Certificate of Conversion Completion.
This requirement ensures that Itan has certain protections and rights related to the leased premises, such as receiving default notices and having the option to cure defaults or assign the lease. This protects Itan's interests in the event the franchisee's business encounters difficulties or the Franchise Agreement is terminated.