When will an Extreme Art Studio franchisee sign the State Addendum?
Extreme_Art_Studio Franchise · 2024 FDDAnswer from 2024 FDD Document
Certain states have laws governing the franchise relationship and franchise documents. Certain states require modifications to the FDD, Franchise Agreement and other documents related to the sale of a franchise. This State Specific Addendum ("State Addendum") will modify these agreements to comply with the state's laws. The terms of this State Addendum will only apply if you meet the requirements of the applicable state independently of your signing of this State Addendum. The terms of this State Addendum will override any inconsistent provision of the FDD, Franchise Agreement or any Supplemental Documents. This State Addendum only applies to the following states: California, Hawaii, Illinois, Iowa, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Ohio, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
If your state requires these modifications, you will sign this State Addendum along with the Franchise Agreement and any Supplemental Agreements.
Source: Item 23 — RECEIPTS (FDD pages 49–214)
What This Means (2024 FDD)
According to the 2024 Extreme Art Studio Franchise Disclosure Document, if a franchisee is in a state that requires modifications to the Franchise Disclosure Document, Franchise Agreement, or other related documents, they will sign the State Addendum along with the Franchise Agreement and any Supplemental Agreements. The State Addendum modifies these agreements to comply with the state's laws and only applies to franchisees meeting the requirements of the applicable state, irrespective of signing the addendum. The terms of the State Addendum will override any inconsistent provisions in the FDD, Franchise Agreement, or any Supplemental Documents.
The states for which this addendum applies include California, Hawaii, Illinois, Iowa, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Ohio, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. This ensures that the franchise agreement adheres to the specific legal requirements of these states.
Prospective franchisees should carefully review the State Addendum applicable to their state, as it contains modifications to the standard franchise agreement that are legally mandated. Understanding these state-specific changes is crucial for ensuring compliance and protecting their rights as franchisees. Franchisees should consult with legal counsel to fully understand the implications of the State Addendum and how it affects their franchise agreement.