Does the Aw Franchise Disclosure Document include state addenda, if applicable?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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Exhibit F
STATE ADDENDUM
Some administrators of franchise registration states may require us to enter into an addendum to the Disclosure Document and/or the Franchise Agreement describing certain state laws or regulations which may supersede the Disclosure Document or Franchise Agreement. If you are in a registration state which requires an addendum, it will be found in this exhibit.
RAYYAN PIZZA FRANCHISE LLC ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT FOR THE STATE OF ILLINOIS
The Rayyan Pizza Franchise LLC Franchise Disclosure Document for use in the State of Illinois is modified in accordance with the following:
Illinois law shall apply to and govern the Franchise Agreement.
In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
Franchisee's rights upon Termination and Non-renewal are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.
Payment of the Initial Franchise Fee will be deferred until Franchisor has met its initial obligations to franchisee, and franchisee has commenced doing business. This financial assurance requirement was imposed by the Office of the Illinois Attorney General due to Franchisor's financial condition.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
According to Aw's 2025 Franchise Disclosure Document, state addenda are included, if applicable. Exhibit F of the FDD is reserved for state addenda, which may be required by franchise registration states. These addenda describe specific state laws or regulations that could supersede the standard Franchise Disclosure Document or the Franchise Agreement.
For franchisees in Illinois, the FDD includes a specific addendum modifying certain terms to comply with the Illinois Franchise Disclosure Act. These modifications cover aspects such as governing law, jurisdiction, franchisee rights upon termination and non-renewal, and waivers of compliance with Illinois law. Notably, the Illinois Attorney General requires that Aw defer the initial franchise fee until Aw has fulfilled its initial obligations and the franchisee has commenced business, a requirement based on Aw's financial condition.
The inclusion of state addenda is important because franchise laws vary significantly from state to state. These addenda ensure that the franchise agreement complies with local regulations, protecting the franchisee's rights and ensuring enforceability. Prospective Aw franchisees should carefully review any state addenda applicable to their state to understand how the standard franchise agreement is modified to comply with local laws.
The FDD also includes a receipt page for the franchisee to acknowledge that they received the disclosure document and all its exhibits, including the state addendum (if applicable). This receipt underscores the importance of reviewing all documents provided, as it confirms that the franchisee was made aware of any state-specific modifications to the franchise agreement.