Under the Itan franchise agreement, what is the definition of 'Secured Agreements'?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to secure Franchisee's financial obligations under the Franchise Agreement and all other Definitive Agreements (collectively, the "Secured Agreements") you hereby personally and unconditionally: (a) guarantee to us and our successors and assigns, that Franchisee shall punctually fulfil all of its payment and other financial obligations under the Secured Agreements; and (b) agree to be personally bound by, and personally liable for, each and every monetary provision in the Secured Agreements.
You waive: (i) acceptance and notice of acceptance by us of the foregoing undertakings; (ii) notice of demand for payment of any indebtedness guaranteed; (iii) protest and notice of default to any party with respect to the indebtedness guaranteed; (iv) any right you may have to require that an action be brought against Franchisee or any other Person as a condition of liability; and (v) the defense of the statute of limitations in any action hereunder or for the collection of any indebtedness hereby guaranteed.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, 'Secured Agreements' are defined within the context of financial security provided by the franchisee. Specifically, these agreements encompass the franchisee's financial obligations under the Franchise Agreement itself and all other Definitive Agreements.
To ensure these financial obligations are met, the franchisee provides a personal and unconditional guarantee to Itan. This guarantee ensures that the franchisee will fulfill all payment and other financial responsibilities outlined in the Secured Agreements. Furthermore, the franchisee agrees to be personally bound by and liable for every monetary provision within these Secured Agreements.
This arrangement means that the franchisee's personal assets are at risk should the Itan franchise fail to meet its financial obligations. The franchisee also waives certain rights, including the right to require Itan to first pursue action against the franchisee before enforcing the guarantee. This clause underscores the significant personal financial commitment required of an Itan franchisee and the importance of carefully evaluating the financial risks involved.