Does the All States M.E.D. franchise agreement specify any geographic limitations on where claims can be brought, other than the Rhode Island provisions?
All_States_M_E_D Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 23: RECEIPTS]
Section 19-28.1-14 of the Rhode Island Franchise Investment Act prohibits a franchisee to be restricted in choice of jurisdiction or venue. To the extent any such restriction is purported to be required by us, it is void with respect to all franchisees governed under the laws of Rhode Island.
Item 17.w. of the Disclosure Document is revised to provide:
Rhode Island law applies.
WASHINGTON ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Washington Franchise Investment Protection Act, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
RHODE ISLAND ADDENDUM TO THE FRANCHISE AGREEMENT
If any of the terms of the Franchise Agreement are inconsistent with the terms below, the terms below control.
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- Any provision in the franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
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- Any provision in the franchise agreement requiring the application of the laws of a state other than Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
"You agree to bring any claim against us, including our present and former employees, agents, and affiliates, which in any way relates to or arises out of this Agreement, or any of the dealings of the parties hereto, solely in arbitration before the American Arbitration Association."
RHODE ISLAND ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Rhode Island Franchise Investment Act, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
Item 17.m. of the Disclosure Document is revised to provide:
Section 19-28.1-14 of the Rhode Island Franchise Investment Act prohibits a franchisee to be restricted in choice of jurisdiction or venue. To the extent any such restriction is purported to be required by us, it is void with respect to all franchisees governed under the laws of Rhode Island.
ILLINOIS ADDENDUM TO THE DISCLOSURE DOCUMENT
As to franchises governed by the Illinois Franchise Disclosure Act, if any of the terms of the Disclosure Document are inconsistent with the terms below, the terms below control.
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- In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
- i) Mediation and Arbitration. Before you may bring any Claim against us court, you agree to try for a period of 60 days to mediate such claim before a mutually agreed to mediator in the city or county where our headquarters are located. If we cannot mutually agree on a mediator, you and we agree to use the mediation services of the American Arbitration Association ("AAA"), and split any AAA and mediator fees equally.
If mediation is unsuccessful and you decide to pursue a legal claim against us, you agree to bring such claim solely in binding arbitration conducted in the city or county of our headquarters in accordance with the Commercial Arbitration Rules of the American Arbitration Association then in effect.
Source: Item 23 — RECEIPTS (FDD pages 44–174)
What This Means (2024 FDD)
According to the 2024 All States M.E.D. Franchise Disclosure Document, the franchise agreement does contain geographic limitations on where claims can be brought, with specific addenda addressing jurisdictional issues in Rhode Island, Washington, and Illinois.
For Rhode Island franchisees, any provision in the franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. Similarly, any provision requiring the application of laws from a state other than Rhode Island is also void for claims enforceable under the Act.
For Washington franchisees, any arbitration or mediation must occur in Washington state or a mutually agreed-upon location. Additionally, if litigation is not precluded by the franchise agreement, a franchisee can bring an action in Washington if it arises from the sale of the franchise or violates the Washington Franchise Investment Protection Act. For Illinois franchisees, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void; however, arbitration may occur outside of Illinois.
Furthermore, the All States M.E.D. franchise agreement states that franchisees agree to bring any claim against All States M.E.D. solely in binding arbitration conducted in the city or county of their headquarters. Prior to bringing a claim in court, franchisees must attempt mediation for 60 days before a mutually agreed to mediator in the city or county where All States M.E.D.'s headquarters are located. If a mediator cannot be agreed upon, the franchisee and All States M.E.D. agree to use the mediation services of the American Arbitration Association.