Under what conditions can Itan terminate a franchise prior to its expiration?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) A provision that permits a franchisor to terminate a franchise prior to the expiration of its term except for good cause.
Good cause shall include the failure of the franchisee to comply with any lawful provision of the franchise agreement and to cure such failure after being given written notice thereof and a reasonable opportunity, which in no event need be more than 30 days, to cure such failure.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan can terminate a franchise agreement before its term expires only for "good cause." This is a fairly standard protection for franchisees, ensuring the franchisor can't arbitrarily end the agreement.
The FDD defines "good cause" as the franchisee's failure to comply with any lawful provision of the franchise agreement. However, Itan must provide the franchisee with written notice of the failure and a reasonable opportunity to correct it. The document specifies that this cure period does not need to be longer than 30 days.
This means that if an Itan franchisee violates the franchise agreement, they will typically have at least 30 days to fix the issue after receiving written notice from Itan. If the franchisee corrects the problem within that timeframe, Itan cannot terminate the agreement. This provision aims to protect franchisees from unfair or hasty terminations, providing them a chance to rectify any issues before facing the severe consequence of losing their franchise.