Does the Michigan addendum to the Pearce Bespoke FDD apply outside of Michigan?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
These State Specific Addenda ("Addenda") modify the agreements and all related agreements to comply with the state's laws. The terms of these Addenda will only apply if you meet the requirements of the applicable state, independent of your signing the appropriate Addenda. The terms of the Addenda will override any inconsistent provision in the FDD, Franchise Agreement, or any Supplemental Documents. These Addenda are only applicable to the following states: California, Hawaii, Illinois, Iowa, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Ohio, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke Franchise Disclosure Document, the Michigan addendum applies specifically to franchisees operating in Michigan. The document includes a section titled "STATE SPECIFIC ADDENDA AND RIDERS," which outlines modifications to the FDD and Franchise Agreement required by certain states. These addenda are designed to ensure compliance with state laws governing franchise relationships.
The FDD states that the terms of the addenda will only apply if the franchisee meets the requirements of the applicable state. This means that the Michigan addendum, which addresses specific provisions prohibited by Michigan law, is only relevant to franchisees who are operating within the state of Michigan. The addendum modifies the agreements to comply with Michigan's laws, and its terms override any inconsistent provisions in the FDD or Franchise Agreement, but only for Michigan franchisees.
Pearce Bespoke includes addenda for several other states, including California, Hawaii, Illinois, Iowa, Indiana, Maryland, Minnesota, New York, North Dakota, Ohio, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. Each of these addenda is tailored to the specific legal requirements of the respective state, and they only apply to franchisees operating in those states. This approach ensures that Pearce Bespoke's franchise agreements comply with local laws and regulations, providing franchisees with the protections and rights afforded to them under state law.