Under the Itan franchise agreement, what evidence is required to rebut the presumption of breach related to a family member's actions?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
You could circumvent the intent of this Agreement by disclosing Confidential Information to immediate family members (i.e., parent, sibling, child or grandchild) and it would be difficult for us to prove your breach.
For that reason you are presumed to have breached this Agreement if an immediate family member uses or discloses Confidential Information.
You may rebut this presumption with evidence conclusively showing you did not disclose Confidential Information to the family member.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, if an immediate family member (parent, sibling, child, or grandchild) engages in prohibited activities or discloses confidential information, the franchisee is presumed to have breached the agreement. This presumption exists because Itan recognizes it would be difficult to directly prove the franchisee disclosed the confidential information to the family member.
However, the franchisee can rebut this presumption. To do so, the franchisee must provide evidence that conclusively shows they did not disclose confidential information to the family member. The FDD does not specify what form this evidence must take, but it must be strong enough to conclusively prove no confidential information was shared.
This clause is significant for prospective Itan franchisees as it places the burden of proof on them if a family member acts in a way that violates the franchise agreement. Franchisees should be aware of this potential liability and take steps to ensure family members understand the importance of confidentiality and prohibited activities related to the Itan franchise.