Is the State-Specific Addendum always included in the Fitstop Franchise Disclosure Document?
Fitstop Franchise · 2024 FDDAnswer from 2024 FDD Document
EXHIBIT H: STATE-SPECIFIC ADDENDUM TO THE DISCLOSURE DOCUMENT
STATE ADDENDUM TO DISCLOSURE DOCUMENT
Notwithstanding anything to the contrary set forth in the Franchise Disclosure Document, the following provisions shall supersede and apply to all franchises offered and sold in the states identified below:
FOR THE STATE OF CALIFORNIA
Registration of this franchise does not constitute approval, recommendation, or endorsement by the Commissioner of the Department of Financial Protection and Innovation.
THE CALIFORNIA FRANCHISE INVESTMENT LAW REQUIRES THAT A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE BE DELIVERED TOGETHER WITH THE DISCLOSURE DOCUMENT.
The California Corporations Code, Section 31125, requires that we give you a disclosure document, approved by the Department of Business Oversight, prior to solicitation of a proposed material modification of your Franchise Agreement.
OUR WEBSITES HAVE NOT BEEN REVIEWED OR APPROVED BY THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION. ANY COMPLAINTS CONCERNING THE CONTENTS OF THIS WEBSITE MAY BE DIRECTED TO THE CALIFORNIA DEPARTMENT OF FINANCIAL PROTECTION AND INNOVATION AT www.dfpi.ca.gov.
Item 3 of the Disclosure Document is supplemented by the following:
- Neither the franchisor nor any person identified in Item 2 of the Disclosure Document is subject to any current effective order of any national securities association or national securities exchange as defined in the Securities Exchange Act of 1934, U.S.C.A., 78a et. seq., suspending or expelling such persons from membership in such association or exchange.
Item 5 of the Disclosure Document is supplemented by the following:
Source: Item 22 — CONTRACTS (FDD pages 49–50)
What This Means (2024 FDD)
According to the 2024 Fitstop Franchise Disclosure Document, a State-Specific Addendum is included, but it only applies to franchises offered and sold in the states specifically identified in the addendum. The document includes addenda for California, Illinois, Indiana, and Maryland, which contain provisions that supersede the standard terms of the Franchise Disclosure Document for those states. These addenda address specific state laws and regulations that affect the franchise agreement.
For example, the addendum for California notes that registration of the franchise does not constitute approval by the Commissioner of the Department of Financial Protection and Innovation. It also states that California law requires Fitstop to provide a disclosure document before any proposed material modification of the Franchise Agreement. The Illinois addendum states that any provision designating jurisdiction outside of Illinois is void for actions enforceable in Illinois and that Illinois law applies to claims arising under the Illinois Franchise Disclosure Act.
The Indiana addendum mentions the Indiana Deceptive Franchise Practices Law, which governs the relationship between Fitstop and its franchisees, forbidding certain provisions in the Franchise Agreement. It also clarifies that any general release of claims does not release claims under the Indiana law and that the Franchise Agreement's venue provisions may not be enforceable under Indiana law. The Maryland addendum notes that Fitstop may be required to post a surety bond to guarantee pre-opening obligations and that franchisees can request an accounting of marketing fee expenditures for a $250 administrative fee. These state-specific addenda ensure that the Fitstop franchise agreements comply with local laws and provide additional protections and disclosures to franchisees in those states.