What is the Itan franchisee's recourse if the State Addendum is deemed void?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
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 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, if a franchisee signs the State Addendum, only the terms applicable to the state or states whose franchise laws apply to their transaction will govern. However, if a franchisee signs the State Addendum, but none of the state franchise laws listed applies because their jurisdictional requirements have not been met, then the State Addendum will be void and inapplicable to them.
In essence, the State Addendum is only effective if the franchisee meets the specific jurisdictional requirements of the state laws it is designed to address. If those requirements are not met, the addendum becomes void, meaning it has no legal effect on the franchise agreement. This could occur if the franchisee's location, business operations, or other factors do not align with the state's franchise laws.
If the State Addendum is deemed void, the original Franchise Agreement and any Supplemental Agreements would remain in full force and effect, without the modifications or overrides that the State Addendum would have provided. This means that the franchisee would be subject to the terms of those agreements as they were originally written, potentially missing out on protections or modifications that the State Addendum was intended to provide under specific state laws. Therefore, it is crucial for franchisees to ensure they meet the jurisdictional requirements of the state laws covered by the State Addendum to ensure its provisions apply to their franchise agreement.