What happens if there is a conflict between the Itan Franchise Agreement and 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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the State Addendum takes precedence over the Franchise Agreement in case of any inconsistencies. This State Addendum modifies the franchise agreements to comply with specific state laws and only applies if the franchisee meets the requirements of the applicable state, independent of signing the addendum.
This means that if a provision in the standard Itan Franchise Agreement clashes with a term in the State Addendum applicable to the franchisee's state, the State Addendum term will govern. This ensures that the franchise operation complies with local laws and regulations, which can vary significantly from state to state. The FDD lists California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin as states to which the State Addendum applies.
For a prospective Itan franchisee, this is a crucial point to understand. They should carefully review the State Addendum applicable to their state, if any, and understand how it modifies the standard Franchise Agreement. This review will help them ensure compliance with local laws and avoid potential legal issues. It is also important to note that 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.