What is the effect of the State Addendum on the Itan FDD?
Itan Franchise · 2025 FDDAnswer 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 Itan's 2025 Franchise Disclosure Document, certain states have laws that require modifications to the standard franchise documents. To address this, Itan uses a State-Specific Addendum (or "State Addendum") to modify the FDD, Franchise Agreement, and other related documents to comply with specific state laws. This addendum only applies to franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
If a franchisee is in a state requiring these modifications, they will sign the State Addendum along with the Franchise Agreement. Only the terms applicable to the specific state whose franchise laws apply to the transaction will govern the agreement. This means that the provisions in the State Addendum will override any conflicting terms in the standard FDD, Franchise Agreement, or any Supplemental Documents, but only for the states where it is applicable.
However, if a franchisee signs the State Addendum but does not meet the jurisdictional requirements of any of the listed states, the State Addendum will be considered void and will not apply to them. This ensures that the standard terms of the Itan franchise agreement remain in effect unless state-specific modifications are legally required and applicable.