Under what condition will the provisions of the addendum be effective for a Carls franchise?
Carls Franchise · 2024 FDDAnswer from 2024 FDD Document
- 7. The provisions of this Addendum will be effective only to the extent that the jurisdictional requirements of the Act are met independently of this Addendum.
Source: Item 23 — RECEIPTS (FDD pages 80–480)
What This Means (2024 FDD)
According to the 2024 Carls FDD, the provisions of the addendum are only effective if the jurisdictional requirements of the relevant statute are met independently of the addendum itself. This condition applies specifically to addenda for franchisees in Washington, Wisconsin and Minnesota.
For Washington, the relevant statute is the Washington Franchise Investment Protection Act. For Wisconsin, it's the Wisconsin Fair Dealership Law, Chapter 135, Stats. For Minnesota, it's the Minnesota Statute. This means that simply including the addendum in the franchise agreement does not automatically trigger its provisions.
The underlying state laws must apply on their own merits, regardless of the addendum. This could depend on factors like where the franchisee resides, where the franchise is located, or where the offer or sale of the franchise took place. A prospective Carls franchisee should consult with a legal professional to determine whether the jurisdictional requirements are met in their specific case.