What does the Angry Chickz Rhode Island Addendum say about choice of law or venue?
Angry_Chickz Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17, Additional Disclosure. The following statement is added to Item 17:
Section 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 provision of this Additional Disclosure shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Rhode Island Franchise Investment Law are met independently without reference to this Additional Disclosure.
Source: Item 23 — RECEIPTS (FDD pages 54–260)
What This Means (2025 FDD)
According to the 2025 Angry Chickz Franchise Disclosure Document, the Rhode Island addendum addresses choice of law and venue. It states that Section 19-28.1-14 of the Rhode Island Franchise Investment Act invalidates any provision in the franchise agreement that restricts jurisdiction or venue to a location outside of Rhode Island or requires the application of laws from another state. This protection applies specifically to claims enforceable under the Rhode Island Franchise Investment Act.
This means that if a dispute arises under the franchise agreement and is actionable under Rhode Island law, an Angry Chickz franchisee in Rhode Island cannot be forced to litigate the matter in another state or under another state's laws. This provision aims to protect the franchisee's rights within their home state.
The addendum clarifies that this protection is only effective if the jurisdictional requirements of the Rhode Island Franchise Investment Law are met independently, without relying on the addendum itself. This implies that the Rhode Island law must already have grounds to apply to the dispute for this provision to be triggered. Angry Chickz franchisees should consult with a legal professional to fully understand the implications of this addendum and how it applies to their specific circumstances.