When does an Itan franchisee sign the State Addendum?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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, the State Addendum is signed along with the Franchise Agreement and any Supplemental Agreements if the franchisee's state requires modifications to the franchise documents due to state laws. This applies specifically to franchisees in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
However, the State Addendum's terms are only applicable if the franchisee meets the requirements of the relevant state independently of signing the addendum. If there are inconsistencies between the Franchise Agreement and the State Addendum, the State Addendum will take precedence, but only for the specific state whose laws apply.
If a franchisee signs the State Addendum but does not meet the jurisdictional requirements of any of the listed states, the State Addendum becomes void and does not apply to them. This ensures that the State Addendum only governs the franchise relationship when mandated by applicable state laws.