For Antioch Pizza Shop franchises in Illinois, what is the legal effect of the addendum?
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.
The terms and conditions of each such Franchise Agreement shall control the establishment and operation of such Antioch Pizza Shop Restaurant.
Source: Item 22 — Contracts (FDD pages 56–57)
What This Means (2025 FDD)
According to the 2025 FDD, the addendum to the Franchise Agreement for Antioch Pizza Shop franchises in Illinois ensures that certain terms of the Multi-Unit Development Agreement (MUDA) relating to initial franchise fees are incorporated into each individual Franchise Agreement. This means that even though a developer might sign a MUDA outlining a plan to open multiple Antioch Pizza Shop locations, each location will have its own Franchise Agreement that is also subject to the MUDA's terms regarding initial franchise fees.
This addendum is important because it clarifies the relationship between the MUDA and the individual Franchise Agreements. The FDD states that each Antioch Pizza Shop Restaurant franchise must be established and operated pursuant to a separate Franchise Agreement. The addendum ensures that the financial obligations agreed upon in the MUDA are reflected in each subsequent Franchise Agreement, providing consistency and legal clarity.
For a prospective Antioch Pizza Shop franchisee, this means that if they are part of a multi-unit development deal, the initial franchise fee terms negotiated in the MUDA will be legally binding and included in their individual franchise agreements. This protects both the franchisee and the franchisor by ensuring that all parties are aligned on the financial aspects of the agreement from the outset. The terms and conditions of each Franchise Agreement shall control the establishment and operation of such Antioch Pizza Shop Restaurant.