For Crepe De Licious, what happens if a provision in the FDD conflicts with the State Addendum?

According to the 2025 Crepe De Licious Franchise Disclosure Document, the terms of the State Addendum will override any inconsistent provision of the FDD, Franchise Agreement, or any Supplemental Documents. This State Addendum only applies to franchisees in California, Hawaii, Illinois, Iowa, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Ohio, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.

For prospective Crepe De Licious franchisees in those states, this means that the State Addendum is critical. Franchisees must carefully review the State Addendum to understand how it modifies the standard Franchise Agreement. If a provision in the standard agreement seems unfavorable, the State Addendum might offer more protection or different terms.

For example, Minnesota has a specific addendum that defers all initial fees and payments owed by franchisees until Crepe De Licious completes its pre-opening obligations under the Franchise Agreement. This addendum is required by the Minnesota Department of Commerce due to the Franchisor's financial condition. This deferral of fees could significantly reduce the initial financial burden on a new franchisee in Minnesota, allowing them to conserve capital during the startup phase. This specific example highlights the importance of understanding the specific addendum for your state, as it can have a direct impact on your financial obligations and the timing of those obligations.

It is important for prospective franchisees to consult with a franchise attorney to fully understand the implications of the State Addendum and how it affects their rights and obligations under the Franchise Agreement. This is a standard practice in franchising, as state laws can vary significantly and impact the franchise relationship.