Does Aw Franchise Disclosure Document include a state addendum?
Aw Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 22 — CONTRACTS (FDD pages 39–40)
What This Means (2025 FDD)
Yes, according to Aw's 2025 Franchise Disclosure Document, a state addendum is included as Exhibit F. The document notes that some franchise registration states may require Aw to include an addendum that describes state laws or regulations that could supersede the standard Franchise Disclosure Document or Franchise Agreement. If an addendum is required for a franchisee's state, it will be found in Exhibit F.
The FDD includes a specific addendum for the state of Illinois as an example. The Illinois addendum modifies certain aspects of the franchise agreement to comply with Illinois law. These modifications cover areas such as governing law, jurisdiction, franchisee rights upon termination or non-renewal, and waivers of compliance with the Illinois Franchise Disclosure Act.
Specifically, the Illinois addendum states that Illinois law governs the Franchise Agreement and that any provision designating jurisdiction and venue outside of Illinois is void, although arbitration outside of Illinois is permitted. It also ensures that franchisees' rights upon termination and non-renewal are protected under Illinois law. Furthermore, it stipulates that the payment of the initial franchise fee will be deferred until Aw has met its initial obligations to the franchisee and the franchisee has commenced business, a requirement imposed by the Illinois Attorney General due to Aw's financial condition. These addenda are crucial for franchisees as they ensure compliance with local laws and provide additional protections or modifications to the standard franchise agreement.