Does the Alloy Franchise Disclosure Document have a Rhode Island addendum?
Alloy Franchise · 2025 FDDAnswer from 2025 FDD Document
RHODE ISLAND ADDENDUM TO FRANCHISE DISCLOSURE DOCUMENT
The following information applies to franchises and franchisees subject to Rhode Island statutes and regulations. Item numbers correspondence to those in the main body.
Item 17
The Rhode Island Franchise Investment Act at Section 19-28.1-14 provides that "a provision in a franchise agreement restricting jurisdiction or venue to a forum outside of this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
ADDENDUM TO THE FRANCHISE AGREEMENT REQUIRED FOR RHODE ISLAND FRANCHISEES
This Addendum pertains to franchises sold in the State of Rhode Island and is for the purpose of complying with Rhode Island statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement is amended as follows:
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- The Rhode Island Franchise Investment Act (the "Act") at Section 19-28.1-14 provides that "a provision in a franchise agreement restricting jurisdiction or venue to a forum outside of 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 parties agree that to the extent that any provision in any of the Contracts entered into by the parties are inconsistent with the Act, the provisions of the Act shall control. They furthermore expressly agree that Rhode Island law shall be applied to, and govern, any claim between the parties that alleges violation of the Act.
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- Except as amended herein, the Franchise Agreement will be construed and enforced in accordance with its terms.
Source: Item 23 — RECEIPTS (FDD pages 69–245)
What This Means (2025 FDD)
Yes, according to the 2025 Alloy Franchise Disclosure Document, there is a Rhode Island addendum. The document includes a section specifically addressing franchises and franchisees subject to Rhode Island statutes and regulations. This addendum modifies the franchise agreement to ensure compliance with Rhode Island law, particularly the Rhode Island Franchise Investment Act.
Specifically, the Rhode Island addendum addresses the enforceability of provisions related to jurisdiction, venue, and choice of law. It states that any provision in the franchise agreement restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws is void with respect to claims enforceable under the Rhode Island Franchise Investment Act. This ensures that Rhode Island franchisees have the right to pursue claims under Rhode Island law within the state.
Additionally, there is an addendum to the franchise agreement required for Rhode Island franchisees. This addendum reinforces that the Rhode Island Franchise Investment Act will control in cases where any provision in the franchise agreement is inconsistent with the Act. It also specifies that Rhode Island law will govern any claim between the parties alleging a violation of the Act. This provides further protection and clarity for franchisees operating in Rhode Island, ensuring that their rights under state law are upheld.