What agreements might the State-Specific Addendum modify for a Best In Class Education Center franchise?
Best_In_Class_Education_Center Franchise · 2025 FDDAnswer from 2025 FDD Document
Certain states have laws governing the franchise relationship and franchise documents. Certain states require modifications to the FDD, Franchise Agreement, Supplemental Agreements and other documents related to the sale of a franchise. This State-Specific Addendum ("State Addendum") will modify these agreements to comply with the applicable state's laws. The terms of this State Addendum will only apply if you meet the requirements of the applicable state independently of your signing of this State Addendum. The terms of this State Addendum (but only the State Addendum for the applicable State) will override any inconsistent provision of the FDD, Franchise Agreement or any Supplemental Documents. This State Addendum only applies to the following states: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
If your state requires these modifications, you will sign this State Addendum along with the Franchise Agreement and any Supplemental Agreements. If you sign this State Addendum, only the terms applicable to the state or states whose franchise laws apply to your transaction will govern. If you sign this State Addendum, but none of the state franchise laws listed above applies because their jurisdictional requirements have not been met, then this State Addendum will be void and inapplicable to you.
Source: Item 23 — RECEIPT (FDD pages 47–204)
What This Means (2025 FDD)
According to Best In Class Education Center's 2025 Franchise Disclosure Document, a State-Specific Addendum may modify several agreements. This addendum is designed to ensure compliance with state laws governing franchise relationships and documents. The specific agreements subject to modification include the Franchise Agreement itself, any Supplemental Agreements, and other documents related to the sale of the franchise.
This State Addendum is applicable only in certain states, which are explicitly listed as: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If a prospective franchisee is located in one of these states and meets the state's specific requirements, the terms of the State Addendum will take precedence over any conflicting provisions in the FDD, the Franchise Agreement, or any Supplemental Documents.
For a potential Best In Class Education Center franchisee, this means that the standard franchise terms could be altered to align with their state's regulations. It is crucial for franchisees to carefully review the State Addendum, if applicable, alongside the standard Franchise Agreement to fully understand their rights and obligations. If the jurisdictional requirements of the listed states are not met, the State Addendum will be considered void and will not apply to the franchisee.