For Aira Fitness franchisees in Rhode Island, under what condition will arbitration of a claim enforceable under the Rhode Island Franchise Investment Act be void?
Aira_Fitness Franchise · 2025 FDDAnswer from 2025 FDD Document
| This | eement is by and between Aira Fitness Franchising, LLC and (Franchisee) to amend said Agreement as follows: | |
|---|---|---|
| 1. | reement on Governing Law/Consent to Jurisdiction is amended by the e to the original language that appears therein: | |
| franchise agreement restric | Rhode Island Franchise Investment Act provides that 'A provision in a cting jurisdiction or venue to a forum outside this state or requiring nother state is void with respect to a claim otherwise enforceable under | |
| 2. | Section 13(A) of the Franchise Ag following language to the original | reement on Agreement to Arbitrate is amended by the addition of the language that appears therein: |
| Investment Act, that any production outside of Rhode Island is | s with respect to a claim enforceable under the Rhode Island Franchise rovision in a franchise agreement which restricts jurisdiction or venue void. Accordingly, arbitration of a claim enforceable under the Act will and unless the franchisee agrees otherwise." |
Source: Item 17 — **RENEWAL, TERMINATION,TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 48–54)
What This Means (2025 FDD)
According to Aira Fitness's 2025 Franchise Disclosure Document, an addendum to the franchise agreement for Rhode Island addresses the enforceability of arbitration clauses. The Rhode Island Franchise Investment Act stipulates that any provision in a franchise agreement that restricts jurisdiction or venue to a location outside of Rhode Island is void with respect to claims enforceable under the Act.
Specifically, arbitration of a claim that is enforceable under the Rhode Island Franchise Investment Act will be void if the franchise agreement restricts jurisdiction or venue outside of Rhode Island. However, this condition is waived if the Aira Fitness franchisee agrees otherwise.
This addendum ensures that Aira Fitness franchisees in Rhode Island retain their rights under the Rhode Island Franchise Investment Act and are not forced to litigate or arbitrate claims in a different state, unless they explicitly agree to do so. This protection is designed to prevent franchisors from imposing unfair or inconvenient legal burdens on franchisees.