Under what circumstances would Aw be required to provide a state addendum to the Disclosure Document or Franchise Agreement?
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, Aw may be required to provide a state addendum to the Disclosure Document and/or the Franchise Agreement if the franchisee is in a franchise registration state. These addenda include specific state laws or regulations that may supersede the standard Disclosure Document or Franchise Agreement. The state addendum, if required, can be found in Exhibit F of the FDD.
For example, the FDD includes a Rayyan Pizza Franchise LLC Addendum to the Franchise Disclosure Document for the state of Illinois. This addendum modifies the standard agreement to comply with Illinois law. Key modifications include that Illinois law governs the Franchise Agreement, and any provision designating jurisdiction and venue outside of Illinois is void, although arbitration may occur outside the state. The addendum also references franchisee rights upon termination and non-renewal as defined in the Illinois Franchise Disclosure Act.
Furthermore, the Illinois addendum stipulates that no condition can bind a franchisee to waive compliance with the Illinois Franchise Disclosure Act. It also states that payment of the initial franchise fee will be deferred until Aw has met its initial obligations and the franchisee has commenced business, a requirement imposed by the Illinois Attorney General due to Aw's financial condition. Finally, the addendum ensures that no statement signed by the franchisee can waive claims under Illinois franchise law or disclaim reliance on statements made by Aw.