What must an Itan franchisee do if their state requires modifications to the franchise agreement?
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 the 2025 Itan Franchise Disclosure Document, if a franchisee's state requires modifications to the Franchise Agreement, FDD, or other related documents, a State-Specific Addendum ("State Addendum") will be included to comply with the state's laws. This addendum will modify the agreements as needed, and its terms will only apply if the franchisee meets the requirements of the specific state, irrespective of signing the addendum. The State Addendum's terms will override any inconsistent provisions in the FDD, Franchise Agreement, or Supplemental Documents, but only for the applicable state.
Itan specifies that this State Addendum applies to 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 because their jurisdictional requirements haven't been met, the State Addendum will be void and inapplicable.
For prospective Itan franchisees, this means carefully reviewing the State Addendum to understand any modifications to the standard franchise agreement based on their state's laws. It is crucial to ensure that the jurisdictional requirements are met for the State Addendum to be valid and enforceable. If a franchisee is located in a state not listed, they should inquire with Itan about whether any state-specific modifications are necessary or if other regulations apply.