To what agreement is the Addendum referring in relation to Antioch Pizza Shop?
Antioch_Pizza_Shop Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Franchise Agreement shall be in the form of Franchise Agreement being offered by us at the time you execute the Franchise Agreement, which may differ from the form of Franchise Agreement being offered by us on the date of execution of this Agreement, except that an addendum to the Franchise Agreement shall be entered into to incorporate terms of this Agreement relating to initial franchise fees to be paid to you under each Franchise Agreement.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 FDD, the addendum mentioned pertains to the Franchise Agreement between Antioch Pizza Shop and the developer. Specifically, it addresses the initial franchise fees to be paid under each Franchise Agreement, incorporating terms from the Development Agreement. This addendum ensures that the initial franchise fee terms agreed upon in the Development Agreement are reflected in the subsequent Franchise Agreements for each Antioch Pizza Shop Restaurant.
For a prospective franchisee, this means that the initial financial obligations outlined in the Development Agreement are legally integrated into each individual Franchise Agreement. This provides clarity and legal assurance that the initial franchise fee terms will be honored across all franchise locations developed under the Development Agreement. The franchisee should carefully review both the Development Agreement and the Franchise Agreement, along with the addendum, to fully understand their financial commitments.
It is also important to note that the Franchise Agreement in effect at the time of signing may differ from the one offered on the date of the Development Agreement. However, the addendum serves to reconcile any differences regarding the initial franchise fees, ensuring consistency with the Development Agreement's terms. This mechanism protects the developer's interests by maintaining the agreed-upon financial terms, regardless of any changes to the standard Franchise Agreement.