What is the purpose of the modifications made to the iTAN Franchise Disclosure Document?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
oyee throughout the year. The Company qualified for the tax credit in the second quarter of 2020, and the second quarter of 2021, totaling an accrued benefit of $31,452 related to the ERC. The credit is included in other income on the Company's statement of earnings for the year ended December 31, 2022.
NOTE 13 SUBSEQUENT EVENTS
The Company has evaluated subsequent events through March 25, 2024, the date on which the financial statements were available to be issued. There were no material subsequent events which affected the amounts or disclosures in the financial statements.
EXHIBIT "H"
TO DISCLOSURE DOCUMENT
OTHER AGREEMENTS
EXHIBIT "H"-1
STATE ADDENDA
[See Attached]
STATE ADDENDA AND AMENDMENTS TO FRANCHISE AGREEMENT, SUPPLEMENTAL AGREEMENTS AND FRANCHISE DISCLOSURE DOCUMENT FOR CERTAIN STATES
BACKGROUND AND PURPOSE
The following modifications are made to the iTAN Franchise Disclosure Document ("FDD" or "Disclosure Document") issued by iTAN Franchising, Inc. ("we" or "us" or "franchisor") to franchisee ("you" or "franchisee") and may supersede certain portions of the Franchise Agreement between you and us dated _________________________, 202__ (the "Franchise Agreement"). When the term "Supplemental Agreements" is used, it means any area development agreement, area representative agreement, master franchise agreement, or similar agreement entered into between us and you, if applicable.
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.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to the 2025 iTAN Franchise Disclosure Document, the modifications made to the FDD are to comply with state laws governing franchise relationships and documents. Certain states require these modifications to the FDD, Franchise Agreement, and Supplemental Agreements related to the sale of a franchise. These modifications are formalized in a State-Specific Addendum, which modifies the agreements to comply with the applicable state's laws.
The terms of the State Addendum will only apply if the franchisee meets the requirements of the applicable state independently of signing the State Addendum. The terms of the State Addendum for the applicable state will override any inconsistent provision of the FDD, Franchise Agreement, or any Supplemental Documents. The State Addendum applies specifically to 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 sign the State Addendum along with the Franchise Agreement and any Supplemental Agreements. However, if none of the state franchise laws listed apply because their jurisdictional requirements have not been met, then the State Addendum will be void and inapplicable to the franchisee. This ensures that iTAN complies with specific state regulations, providing franchisees with the necessary legal protections and disclosures required in their respective locations.