For Itan, what is the purpose of 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.
CALIFORNIA
The California Franchise Investment Law requires a copy of all proposed agreements relating to the sale of the Franchise be delivered together with the Disclosure Document.
Section 31125 of the California Corporations Code requires us to give you a disclosure document, in a form containing the information that the Commissioner may by rule or order require, before a solicitation of a proposed material modification of an existing franchise.
Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the State Addendum is designed to modify the FDD, Franchise Agreement, and other related documents to ensure compliance with specific state laws governing franchise relationships and documentation. These modifications are applicable only if the franchisee meets the legal requirements of the specific state, independent of signing the addendum. The State Addendum's terms will supersede any conflicting provisions in the FDD, Franchise Agreement, or any Supplemental Documents, but only for the specific state in question.
Itan's State Addendum is relevant in California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If a franchisee is required to sign the State Addendum, only the terms applicable to their state will govern the franchise agreement. However, if the franchisee signs the State Addendum but does not meet the jurisdictional requirements of any of the listed states, the State Addendum becomes void and does not apply.
For example, the California section of the State Addendum specifies that all proposed agreements related to the sale of the Itan franchise must be delivered along with the Disclosure Document, as required by the California Franchise Investment Law. Additionally, Section 31125 of the California Corporations Code mandates that Itan provide a disclosure document before soliciting any proposed material modification of an existing franchise.
In summary, the State Addendum ensures that Itan's franchise agreements comply with the varying legal requirements of different states, providing a level of legal security and clarity for both the franchisor and the franchisee. It is important for prospective franchisees to understand whether their state requires this addendum and to review its terms carefully to ensure they are aware of any state-specific modifications to the standard franchise agreement.