Under the Itan Franchise Owner Agreement, who are the parties entering into the agreement?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
This Franchise Owner Agreement (this "Agreement") is entered into by: (a) each of the undersigned Owners of Franchisee (defined below); and (b) the spouse of each such Owner who is a natural Person, in favor of iTAN Franchising, Inc., a California corporation, and its successors and assigns ("us"). Each signatory to this Agreement is referred to as "you".
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the Franchise Owner Agreement is entered into by specific parties. On one side is iTAN Franchising, Inc., identified as "us" in the agreement, including its successors and assigns. On the other side are the owners of the franchisee, along with their spouses if they are natural persons. Each individual signing the agreement is referred to as "you."
This means that not only the franchisee (the business entity) is bound by the agreement, but also the individual owners and their spouses. This is a common practice in franchising, as it ensures that the obligations and responsibilities extend beyond the corporate entity to the individuals who control and benefit from the franchise. Including the spouses of the owners provides an additional layer of security for Itan, as it prevents potential loopholes related to community property or spousal rights.
For a prospective Itan franchisee, this means that they, as the owner, and their spouse will be personally bound by the terms of the Franchise Owner Agreement. They should carefully review the agreement and understand their obligations, as they will be personally liable for compliance. This is a significant consideration, as it puts their personal assets at risk if the franchise fails to meet its obligations under the agreement.