What is the Itan franchisor'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 franchise relationships and documents, which may require modifications to the FDD, Franchise Agreement, supplemental agreements, and other related documents. To address this, Itan uses a State-Specific Addendum ('State Addendum') to ensure compliance with these state laws. This addendum modifies the agreements to comply with applicable state laws. The terms outlined in the State Addendum will only be applicable if the franchisee meets the specific requirements of the relevant state, irrespective of signing the addendum.
If there is any inconsistency between the executed Franchise Agreement and the State Addendum, the terms of the State Addendum will take precedence, but only for the state or states whose franchise laws apply to the transaction. Itan's State Addendum specifically applies to California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
If a prospective Itan franchisee is in a state that requires these modifications, they will sign the State Addendum along with the Franchise Agreement and any Supplemental Agreements. However, if the 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 not applicable.