What is included as Exhibit E in the Chocolate Bash FDD?

According to the 2024 Chocolate Bash FDD, Exhibit E includes the State Addenda to the Disclosure Document. The disclosure document I received on March 14, 2024, included this exhibit, along with others such as Exhibit A (State Administrators and Agents for Service of Process), Exhibit B (Franchise Agreement with Guaranty and Non-Compete Agreement), Exhibit C (Multi-Unit Development Agreement), and Exhibit D (Financial Statements).

For prospective Chocolate Bash franchisees, the State Addenda is a crucial section. It contains state-specific legal requirements and modifications to the standard franchise agreement. These addenda address how the franchise laws in certain states may alter or supersede the standard terms outlined in the main agreement.

For example, the California Addendum included in Exhibit E highlights specific provisions related to California law, such as the requirement to provide a disclosure document before any material modification of an existing franchise. It also notes that California's Franchise Relations Act governs franchisees operating outlets in California, regardless of any conflicting choice of law or dispute resolution venue stated elsewhere in the agreement. Furthermore, it clarifies the enforceability of non-compete clauses under California Business and Professions Code Section 16600, which may render such clauses void to the extent they restrain a former franchisee from engaging in a lawful trade or business. These state-specific addenda ensure that the franchise agreement complies with local regulations and protect the franchisee's rights within that state.