Upon renewal of an Itan franchise, does Itan reserve the right to modify the territory?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
We have no obligation to modify your territory based on population changes during the term of the Franchise Agreement. Upon renewal, we reserve the right to modify your territory in accordance with our then-current territory guidelines and criteria.
Source: Item 12 — TERRITORY (FDD pages 31–33)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the franchisor retains the right to modify a franchisee's territory upon renewal of the franchise agreement. Specifically, Itan reserves the right to modify the territory in accordance with their then-current territory guidelines and criteria.
This means that when a franchisee renews their agreement with Itan, the territory they previously operated in may be subject to change. These changes will be based on the territory guidelines and criteria that Itan has in place at the time of renewal.
For a prospective franchisee, this indicates a potential risk. The territory a franchisee relies on for their business could be altered at the time of renewal, potentially impacting their customer base and revenue. It is important for potential franchisees to understand Itan's territory guidelines and criteria, and how those might evolve over time, to assess the long-term viability of their investment. Franchisees should discuss with Itan what factors might cause a territory to be modified upon renewal.