factual

Under the Itan franchise agreement, are the representations and warranties regarding compliance with anti-terrorism laws considered 'continuing'?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

Laws currently in effect, or enacted in the future, that prohibit corrupt business practices, money laundering or the aid or support of Persons who conspire to commit acts of terror against any Person or government.

The foregoing representations and warranties are 'continuing' representations and warranties for the duration of the franchise relationship.

Accordingly, you must immediately notify us of the occurrence of an event or development of a circumstance that might render any of the foregoing representations and warranties false, inaccurate or misleading.

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to Itan's 2025 Franchise Disclosure Document, the representations and warranties regarding compliance with anti-terrorism laws are considered 'continuing' for the duration of the franchise relationship. This means that the franchisee's obligations and assurances related to anti-terrorism laws are not a one-time agreement but remain in effect throughout the entire term of the franchise agreement.

Specifically, the franchisee and owners must represent and warrant that they are in compliance, and will continue to comply, with anti-terrorism laws and other U.S. laws that prohibit corrupt business practices, money laundering, or support for those who conspire to commit acts of terror. This includes ensuring that no property or interest owned by them is subject to being "blocked" under any Anti-Terrorism Law and that they are not identified on any Terrorist List.

This 'continuing' nature places an ongoing responsibility on the Itan franchisee to monitor and ensure compliance. The franchisee is obligated to immediately notify Itan of any event or circumstance that might render any of these representations and warranties false, inaccurate, or misleading. This requirement is more stringent than a one-time representation, as it demands constant vigilance and immediate disclosure of any potential issues throughout the franchise relationship.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.