What agreements, besides the Franchise Agreement, might the Itan State Addendum modify?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
MENTAL AGREEMENTS AND FRANCHISE DISCLOSURE DOCUMENT FOR CERTAIN STATES**
BACKGROUND AND PURPOSE
The following modifications are made to the iTAN Franchise Disclosure Document ("FDD" or "Disclosure Document") issued by iTAN Franchising, Inc. ("we" or "us" or "franchisor") to franchisee ("you" or "franchisee") and may supersede certain portions of the Franchise Agreement between you and us dated _________________________, 202__ (the "Franchise Agreement"). When the term "Supplemental Agreements" is used, it means any area development agreement, area representative agreement, master franchise agreement, or similar agreement entered into between us and you, if applicable.
Certain states have laws governing the franchise relationship and franchise documents. Certain states require modifications to the FDD, Franchise Agreement, Supplemental Agreements and other documents related to the sale of a franchise. This State-Specific Addendum ("State Addendum") will modify these agreements to comply with the applicable 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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the State Addendum can modify not only the Franchise Agreement but also Supplemental Agreements and other documents related to the sale of a franchise. This modification is necessary to ensure compliance with the franchise laws of specific states. The State Addendum's terms will take precedence over any conflicting provisions in the FDD, Franchise Agreement, or any Supplemental Documents, but only if the franchisee meets the requirements of the applicable state independently of signing the State Addendum.
This State Addendum is applicable in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If a franchisee's state requires these modifications, they will sign the State Addendum along with the Franchise Agreement and any Supplemental Agreements. However, if none of the listed state franchise laws apply due to unmet jurisdictional requirements, the State Addendum will be void and inapplicable.
For franchisees, this means that the terms of their franchise agreement can vary depending on the state in which they are operating. It is crucial to understand the specific state laws and how they modify the standard franchise agreement. Franchisees should carefully review the State Addendum and any Supplemental Agreements to ensure they are aware of their rights and obligations under the applicable state laws. This also highlights the importance of seeking legal counsel to navigate these state-specific modifications and understand their implications.