Regarding Annex Brands franchises in Rhode Island, what happens to any franchise agreement provision that restricts jurisdiction or venue to a forum outside of Rhode Island?
Annex_Brands Franchise · 2025 FDDAnswer from 2025 FDD Document
RHODE ISLAND STATE ADDENDUM TO DISCLOSURE DOCUMENT
- (1) Item 17, Summary columns for (u),(v) and (w) are amended to add the following:
- Any provision in the franchise agreement restricting jurisdiction or venue to a forum outside Rhode Island or requiring the application of the laws of a state other than Rhode Island is void as to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
- (2) The franchise agreement and any document signed in connection with the franchise are supplemented with the following language:
- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement by any franchisor, franchise seller, or other person acting on behalf of franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — Receipts (FDD pages 110–299)
What This Means (2025 FDD)
According to Annex Brands's 2025 Franchise Disclosure Document, any provision in the franchise agreement that restricts jurisdiction or venue to a forum outside of Rhode Island is void with respect to claims enforceable under the Rhode Island Franchise Investment Act. This means that if an Annex Brands franchisee in Rhode Island has a claim under this Act, they cannot be forced to litigate or resolve the dispute in another state.
This protection is specifically outlined in the Rhode Island State Addendum to the disclosure document. It ensures that Rhode Island franchisees have the right to pursue legal claims within their own state, avoiding the potential burden and expense of traveling to another jurisdiction. This addendum directly amends Item 17 of the franchise agreement, which typically covers litigation and dispute resolution.
In addition to the jurisdiction and venue provision, the Rhode Island addendum also states that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Annex Brands or its representatives. This further protects the franchisee's rights and ensures they cannot inadvertently forfeit legal protections.