According to Itan's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse Itan for attorney's fees and costs under certain circumstances. Specifically, if either party initiates legal action against the other for breaching the agreement, the losing party is obligated to cover the prevailing party's reasonable attorney's fees and associated costs. This provision applies to disputes arising directly from the franchise agreement.

This clause means that if an Itan franchisee breaches the franchise agreement and Itan takes legal action, resulting in a court ruling in Itan's favor, the franchisee will be responsible for Itan's legal expenses. Conversely, if Itan breaches the agreement and the franchisee wins the legal battle, Itan would have to cover the franchisee's legal costs. This creates a financial risk for franchisees who may consider legal action against Itan, as they could end up paying not only their own legal fees but also Itan's if they lose the case.

It is important to note that the term 'reasonable attorneys' fees and costs' is subjective and can be a point of contention in legal disputes. What one party considers reasonable, the other may not. Franchisees should carefully consider this clause and the potential financial implications before entering into a franchise agreement with Itan. Understanding the specific circumstances that could lead to a breach of contract and the potential costs associated with legal action is crucial for making an informed decision.