Does the Rhode Island Amendment to the Aplus franchise agreement prevent the settlement of disputes under the Rhode Island Franchise Investment Act?
Aplus Franchise · 2024 FDDAnswer from 2024 FDD Document
- Franchisor will not require that Franchisee prospectively assent to a waiver, condition, stipulation, or provision that purports to relieve any person from liability imposed by the Rhode Island Franchise Investment Act. This provision does not apply to the settlement of disputes, claims, or civil lawsuits brought under the Rhode Island Franchise Investment Act.
Source: Item 22 — CONTRACTS (FDD page 68)
What This Means (2024 FDD)
According to the 2024 Aplus Franchise Disclosure Document, the Rhode Island Amendment to the franchise agreement does not prevent the settlement of disputes, claims, or civil lawsuits brought under the Rhode Island Franchise Investment Act. The amendment explicitly states that the provision preventing the requirement of a waiver of liability imposed by the Rhode Island Franchise Investment Act does not apply to the settlement of such disputes.
This means that while Aplus cannot require a franchisee to prospectively waive their rights under the Rhode Island Franchise Investment Act, the franchisee is not prevented from settling any claims or lawsuits brought under this act. This allows for negotiated resolutions to be reached between Aplus and its franchisees in Rhode Island without violating the state's franchise laws.
Furthermore, the Rhode Island Amendment includes additional protections for franchisees, such as preventing Aplus from restricting jurisdiction or venue to a forum outside of Rhode Island for claims enforceable under the Rhode Island Franchise Investment Act, and ensuring a four-year statute of limitations for claims arising under the Act. These provisions collectively aim to balance the interests of both the franchisor and franchisee within the legal framework of Rhode Island.