What agreements are potentially modified by the State Addenda in the Itan FDD?
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 may modify the Franchise Agreement, Supplemental Agreements, and the Franchise Disclosure Document (FDD) itself. These modifications are implemented to ensure compliance with the franchise laws of specific states. The terms outlined in the State Addendum will take precedence over any conflicting provisions in the FDD, Franchise Agreement, or Supplemental Documents, but only if the franchisee meets the requirements of the specific state independently of signing the 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 be required to sign the State Addendum along with the Franchise Agreement and any Supplemental Agreements. However, if the jurisdictional requirements of these states are not met, the State Addendum will be considered void and inapplicable.
For prospective Itan franchisees, it is crucial to understand whether their state is listed and if the State Addendum applies to their specific situation. This ensures that they are aware of any modifications to the standard agreements and that they are in compliance with their state's franchise laws. Franchisees should carefully review the State Addendum and seek legal counsel to fully understand its implications and how it affects their rights and obligations under the franchise agreement.