Under what circumstances will the Itan State Addendum be considered void?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
, 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 Itan's 2025 Franchise Disclosure Document, the State Addendum is designed to modify franchise agreements to comply with specific state laws. These addenda are applicable in states like California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
The Itan State Addendum becomes void and inapplicable if a franchisee signs it, but the jurisdictional requirements of the listed state franchise laws are not met. This means that if the franchisee's situation does not fall under the purview of any of the state franchise laws listed, the State Addendum will not be valid.
In practical terms, this condition protects both Itan and the franchisee. It ensures that the specific state modifications only apply when they are legally required, preventing unnecessary complications or conflicts in areas where state franchise laws do not govern the franchise relationship. Franchisees should carefully review the jurisdictional requirements of their state's franchise laws to determine if the State Addendum applies to their situation. If there is uncertainty, consulting with a legal professional is advisable.