In Rhode Island, does the Auntie Annes franchise agreement have any enforceable restrictions regarding jurisdiction or venue outside of Rhode Island, according to the Rhode Island Franchise Investment Act?
Auntie_Annes Franchise · 2024 FDDAnswer from 2024 FDD Document
In recognition of the requirements of the Rhode Island Franchise Investment Act, §§ 19- 28.1-1 through 19-28.1-34, the Disclosure Document for Auntie Anne's Franchisor SPV LLC for use in the State of Rhode Island is amended as follows by adding the following language at the end of 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."
Source: Item 22 — CONTRACTS (FDD page 106)
What This Means (2024 FDD)
According to Auntie Annes's 2024 Franchise Disclosure Document, the Rhode Island Addendum addresses the enforceability of restrictions regarding jurisdiction or venue outside of Rhode Island. Specifically, Section 19-28.1-14 of the Rhode Island Franchise Investment Act stipulates that any provision in the franchise agreement that restricts jurisdiction or venue to a forum outside of Rhode Island, or requires the application of laws from another state, is void with respect to any claim enforceable under the Act. This amendment is added to Item 17 of the disclosure document for use in Rhode Island.
For a prospective Auntie Annes franchisee in Rhode Island, this means that they cannot be forced to litigate claims under the Rhode Island Franchise Investment Act in a court outside of Rhode Island, nor can the franchise agreement force them to apply laws of another state to such claims. This provision protects the franchisee's rights within the state and ensures that disputes arising under the Rhode Island Franchise Investment Act will be subject to Rhode Island law and adjudicated within the state.
This type of addendum is common in franchise agreements to ensure compliance with state-specific franchise laws, which often provide additional protections to franchisees beyond federal law. Franchisees should always carefully review any state-specific addenda to understand their rights and obligations within their particular state.