How does the Rhode Island Addendum affect the rest of the Atwell Suites Franchise Disclosure Document?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the Franchise Disclosure Document, the following provisions shall supersede and apply to all franchises offered and sold in the State of Rhode Island.
ITEM 17 RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
§19-28.1.-14 of the Rhode Island Franchise Investment Act provides that "A provision in a License 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."
Any provision in the License which designates the governing law as that of any state other than the State of Rhode Island is deleted from Licenses issued in the State of Rhode Island.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, the Rhode Island Addendum modifies the standard franchise agreement for franchisees operating in Rhode Island. The FDD states that the provisions outlined in the Rhode Island Addendum supersede any conflicting terms in the main Franchise Disclosure Document. This means that if a section of the standard agreement clashes with the addendum, the addendum's terms will take precedence for Atwell Suites franchises within Rhode Island. The Rhode Island Addendum addresses specific legal considerations within the state.
Specifically, the addendum addresses Item 17, which concerns renewal, termination, transfer, and dispute resolution. It references §19-28.1.-14 of the Rhode Island Franchise Investment Act, which invalidates any agreement clauses that restrict jurisdiction or venue to locations outside of Rhode Island or that require the application of laws from another state. Furthermore, any part of the License that designates the governing law as a state other than Rhode Island is deleted for licenses issued in Rhode Island.
For a prospective Atwell Suites franchisee in Rhode Island, this means that certain standard terms related to dispute resolution and governing law will not apply. Instead, Rhode Island law will govern these aspects of the franchise agreement, ensuring that legal proceedings occur within the state and under Rhode Island's legal framework. This modification aims to protect the franchisee's rights under Rhode Island law and prevent them from being subjected to potentially unfavorable legal conditions in another jurisdiction. The prospective franchisee should carefully review the Rhode Island Addendum in conjunction with the standard Franchise Disclosure Document to fully understand their rights and obligations under Rhode Island law.