Under what condition is the Addendum being signed between Crisp & Green and the franchisee?

According to Crisp & Green's 2024 Franchise Disclosure Document, the addendum to the franchise agreement is signed under specific conditions related to the franchisee's location or domicile. For instance, an addendum is required if the franchisee is domiciled in New York, and the franchised restaurant will operate in New York, or if any offering or sales activity related to the franchise agreement occurred in New York. Similarly, there are addenda for franchises sold in Minnesota, applicable if the restaurant is located in Minnesota or the franchisee is a resident of Minnesota. These addenda ensure compliance with state-specific statutes and regulations.

These addenda modify certain aspects of the standard Crisp & Green franchise agreement to align with state laws. For example, the New York addendum addresses rights and causes of action under New York's General Business Law, ensuring these rights remain in force. The Minnesota addendum covers aspects like trademark infringement defense, termination rights, and releases, ensuring Crisp & Green complies with Minnesota franchise laws.

The addenda also include clauses that prevent franchisees from waiving claims under applicable state franchise laws or disclaiming reliance on franchisor statements. This provision is consistent across addenda for states like Virginia, North Dakota, and Rhode Island, reinforcing franchisee protection. The addenda are only effective if the jurisdictional requirements of the respective state's franchise laws are met independently, without relying on the addendum itself.

Prospective Crisp & Green franchisees should pay close attention to whether an addendum applies to their specific situation, as these addenda can significantly alter the terms of the standard franchise agreement. Understanding these state-specific modifications is crucial for ensuring compliance and protecting their rights as franchisees.