What is the relationship between the Itan Franchise Agreement and the State Addendum?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
MENTAL 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. 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
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- 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.
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- 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.
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Source: Item 23 — RECEIPT (FDD pages 44–190)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, the State Addendum modifies the Franchise Agreement to comply with specific state laws. Itan requires a State Addendum to the Franchise Agreement in certain states that have laws governing the franchise relationship. These states include California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
If a franchisee is in a state that requires these modifications, they will sign the State Addendum along with the Franchise Agreement. However, only the terms applicable to the specific state whose franchise laws apply will govern the agreement. If the franchisee signs the State Addendum, but the jurisdictional requirements of the listed states are not met, the State Addendum will be void and not applicable.
Furthermore, the State Addendum and the Franchise Agreement constitute the entire agreement between the parties. Any prior agreements are void unless contained within the executed Addendum and Franchise Agreement. In the event of any inconsistency between the Franchise Agreement and the State Addendum, the State Addendum will take precedence.