According to the 2025 Focus Cfo Franchise Disclosure Document, an addendum to the franchise agreement is signed under specific circumstances related to the franchisee's location or activities within certain states. For franchisees in Illinois, an addendum is required if the franchisee is domiciled in Illinois, the franchise offer is made or accepted in Illinois, or the franchise business is or will be located in Illinois.

For franchisees residing in Maryland, an addendum is necessary if the franchisee is a resident of Maryland or if the franchised business will operate in Maryland, or if any offering or sales activity related to the franchise agreement occurred in Maryland. This addendum ensures that franchisees can bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, amending sections of the franchise agreement related to governing law, jurisdiction, and limitation of claims. It also addresses releases and the deferral of initial fees based on the franchisor's financial condition as required by the Maryland Securities Commissioner.

Similarly, for franchisees in North Dakota, an addendum is signed if the franchisee is a resident of North Dakota, the franchised business will be located in North Dakota, or any franchise-related activities occurred in North Dakota. This addendum modifies sections of the franchise agreement concerning releases, covenants not to compete, arbitration, jurisdiction, and governing law to align with North Dakota state regulations. These addenda ensure that the franchise agreement complies with the specific legal requirements and protections provided by the franchise laws of Illinois, Maryland, and North Dakota.