According to the Rhode Island addendum, what does the Rhode Island Franchise Investment Act say regarding jurisdiction or venue restrictions in a 1-800-GOT-JUNK? franchise agreement?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
§ 19-28.1-14 of the Rhode Island Franchise Investment Act provides that "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." The Disclosure Document and Franchise Agreement are amended accordingly to the minimum extent required by law.
ACKNOWLEDGMENT:
It is agreed that the foregoing state law addendum supersedes any inconsistent portion of the Franchise Agreement dated the _____ day of _________________, 20, and of the Franchise Disclosure Document, but only to the extent they are then valid requirements of an applicable and enforceable state law, and for only so long as the state law remains in effect.
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
According to the 2025 FDD, the Rhode Island addendum addresses jurisdiction and venue restrictions within the 1-800-GOT-JUNK? franchise agreement, citing § 19-28.1-14 of the Rhode Island Franchise Investment Act. This section of the Act stipulates that any provision in a franchise agreement that restricts jurisdiction or venue to a location outside of Rhode Island, or mandates the application of laws from another state, is considered void if a claim is otherwise enforceable under this Act.
For a prospective 1-800-GOT-JUNK? franchisee in Rhode Island, this means that the franchise agreement cannot force them to resolve disputes in a legal venue outside of Rhode Island, nor can it require that the laws of another state govern their claims, provided those claims are enforceable under the Rhode Island Franchise Investment Act. This provision is designed to protect franchisees by ensuring they can pursue legal remedies within their own state, under their own state's laws, without being disadvantaged by potentially distant or unfamiliar legal systems.
The 1-800-GOT-JUNK? Disclosure Document and Franchise Agreement are explicitly amended to comply with this Rhode Island law, but only to the minimum extent required and only for as long as the state law remains in effect. This amendment ensures that the franchise agreement aligns with Rhode Island law, giving the franchisee certain protections regarding legal proceedings and choice of law. The addendum also includes an acknowledgment section where both the franchisor and franchisee agree that the state law addendum supersedes any inconsistent parts of the Franchise Agreement or Disclosure Document, reinforcing the primacy of Rhode Island law on these matters.