factual

Besides the Franchise Agreement, what other agreements might the iTAN State Addendum modify?

Itan Franchise · 2025 FDD

Answer from 2025 FDD Document

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. The terms of this State Addendum (but only the State Addendum for the applicable State) 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, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, 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. If you sign this State Addendum, only the terms applicable to the state or states whose franchise laws apply to your transaction will govern. If you sign this State Addendum, but none of the state franchise laws listed above applies because their jurisdictional requirements have not been met, then this State Addendum will be void and inapplicable to you.

Source: Item 23 — RECEIPT (FDD pages 44–190)

What This Means (2025 FDD)

According to the 2025 iTAN Franchise Disclosure Document, the State Addendum may modify not only the Franchise Agreement but also Supplemental Agreements and other documents related to the sale of a franchise. These modifications are necessary to ensure compliance with the franchise laws of specific states.

The State Addendum's terms will only apply if the franchisee meets the requirements of the applicable state, independent of signing the addendum. If there is any inconsistency between the Franchise Agreement and the State Addendum, the terms of the State Addendum will take precedence, but only for the states to which it applies.

The states for which this State Addendum applies include California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If a franchisee signs the State Addendum but does not meet the jurisdictional requirements of any of these states, the State Addendum will be considered void and inapplicable.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.