What is the Itan franchisee's responsibility regarding the State Addendum?
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 govern the franchise relationship and documents. To comply with these laws, Itan uses a State-Specific Addendum ("State Addendum") to modify the FDD, Franchise Agreement, and other related documents. This addendum applies only if the franchisee meets the requirements of the applicable state, irrespective of signing the State Addendum. The State Addendum will override any inconsistent provisions in the FDD, Franchise Agreement, or any Supplemental Documents, but only for the specific state it applies to.
The State Addendum is applicable in 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 need to sign the State Addendum along with the Franchise Agreement and any Supplemental Agreements. However, only the terms applicable to the state whose franchise laws apply to their transaction will govern.
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 void and not applicable to them. This ensures that the franchise agreement complies with specific state laws only when those laws are relevant to the franchisee's location and circumstances. Therefore, it is crucial for prospective Itan franchisees to understand whether their state requires a State Addendum and to ensure they meet the jurisdictional requirements for it to be valid.