Under the Itan franchise agreement, what is the franchisee's responsibility regarding a request for approval?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Whenever this Agreement requires our approval, you must make a timely written request for approval.
Our approval must be in writing in order to bind us.
Except as otherwise expressly provided in this Agreement, if we fail to approve any request for approval within the required period of time, we shall be deemed to have disapproved your request.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to the 2025 Itan Franchise Disclosure Document, if the franchise agreement requires the franchisee to obtain Itan's approval for any matter, the franchisee must submit a written request to Itan in a timely manner. This means the franchisee cannot simply assume approval or proceed without formal written consent when the agreement stipulates approval is needed.
Itan's approval must be provided in writing to be considered binding. This protects both the franchisee and Itan by ensuring there is a clear record of what was approved. It also prevents misunderstandings or disputes based on verbal agreements or assumptions. If Itan fails to respond to the franchisee's request within the specified time, the request is deemed disapproved, unless the franchise agreement explicitly states otherwise.
This clause highlights the importance of clear communication and documentation in the franchisor-franchisee relationship. The franchisee bears the responsibility of initiating the approval process with a formal written request. This requirement is fairly standard in franchising, as it provides a necessary level of control and oversight for the franchisor to maintain brand standards and consistency across all franchise locations. Prospective Itan franchisees should carefully note all instances in the franchise agreement where Itan's approval is required and understand the process for obtaining it.