Does Itan waive its rights by failing to exercise them with respect to other Itan franchisees?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither party is deemed to have waived or impaired any of its rights under this Agreement, including the right to require strict compliance with all terms of this Agreement or terminate this Agreement if the other party fails to comply with such terms, by virtue of: (a) any custom or practice of the parties at variance with the terms of this Agreement; (b) any failure, refusal or neglect by a party to exercise any right under this Agreement or require the other party to strictly comply with any term of this Agreement; (c) our waiver, failure or refusal to exercise any of our rights with respect to other franchisees; or (d) our acceptance of payment from you after your breach.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, Itan's failure to exercise its rights with respect to other franchisees does not mean that Itan has waived those rights. Itan retains the right to require strict compliance with the terms of the Franchise Agreement, and can terminate the agreement if a franchisee fails to comply with those terms. This is the case regardless of whether Itan has previously failed to exercise those rights with other franchisees.
This clause protects Itan's ability to enforce the franchise agreement uniformly across its franchise system. It ensures that Itan is not penalized for showing leniency or forbearance to some franchisees, and that it can still take action against any franchisee who violates the agreement, even if similar violations by other franchisees were not previously addressed.
For a prospective Itan franchisee, this means that Itan is not giving up its right to enforce the agreement just because it hasn't enforced it in other situations. Franchisees should not assume that they can violate the agreement without consequence simply because Itan has not taken action against other franchisees in the past. Itan retains the right to enforce the agreement at any time, and franchisees should always be in compliance with the terms of the agreement.