Under what conditions would the state-specific addendum disclosures in the Buns On Fire Franchise Disclosure Document not apply?
Buns_On_Fire Franchise · 2025 FDDAnswer from 2025 FDD Document
Each provision of this Addendum to the Disclosure Document shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Indiana Franchise Disclosure Law, Indiana Code §§ 23-2-2.5-1 to 23-2-2.5-51, and the Indiana Deceptive Franchise Practices Act, Indiana Code §§ 23-2-2.7-1 to 23-2-2.7-10, are met independently without reference to this Addendum to the Disclosure Document.
Each provision of this Addendum shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Rhode Island Franchise Investment Act §§ 19-28.1-1 through 19-28.1-34, are met independently without reference to this Addendum to the Disclosure Document.
There are circumstances in which an offering made by us would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the state of New York. However, an offer or sale is deemed made in New York if the franchisee is domiciled in or the franchise will be operated in New York. We are required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
Source: Item 23 — RECEIPTS (FDD pages 49–200)
What This Means (2025 FDD)
According to the 2025 Buns On Fire Franchise Disclosure Document, the state-specific addenda may not always apply. For instance, the addendum for Indiana specifies that each provision within it is effective only if the jurisdictional requirements of the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act are independently met, without relying on the addendum itself. This means that if a specific situation doesn't fall under the jurisdiction of these Indiana laws, the corresponding provision in the addendum would not be applicable.
Similarly, the Rhode Island addendum includes a provision stating that each part of the addendum is effective only if the jurisdictional requirements of the Rhode Island Franchise Investment Act are met independently, without reference to the addendum. Therefore, if a particular scenario doesn't meet the requirements of the Rhode Island act, that specific part of the addendum would not be in effect.
In New York, the addendum might not apply if the offer and acceptance of the franchise occurred outside of New York state. However, if the franchisee is domiciled in New York or the franchise will be operated in New York, the offer or sale is considered to have been made in New York, and the New York prospectus must be furnished to the prospective franchisee. These stipulations ensure that the state-specific protections are targeted to situations and individuals that the state laws are designed to protect.