Under what condition is this amendment effective for Azal Coffee franchises in Rhode Island?
Azal_Coffee Franchise · 2024 FDDAnswer from 2024 FDD Document
| THIS ADDENDUM is made this | day of, 20, and modifies a |
|---|---|
| Franchise Agreement of the same date entered | d into by DURAR INVESTMENT, LLC, a Michigan |
| limited liability company ("Franchisor") and | |
| (" Franchisee "). | |
| In recognition of the requirements of the 28.1-1 through 19-28.1-34, the parties agree as | e Rhode Island Franchise Investment Act, §§ 19- s follows: |
| 1. Applicable Law . Article 18 of the following: | he Franchise Agreement is amended by adding |
| provision in a franchise agreement restricting | Franchise Investment Act provides that "A ng jurisdiction or venue to a forum outside this ws of another state is void with respect to a " |
| with respect to such provision, that the jurisdict | This Amendment is effective only to the extent, ional requirements of the Rhode Island Franchise -34, are met independently without reference to |
Source: Item 23 — RECEIPTS (FDD pages 51–204)
What This Means (2024 FDD)
According to Azal Coffee's 2024 Franchise Disclosure Document, an amendment to the franchise agreement addresses the Rhode Island Franchise Investment Act. Specifically, it notes that Rhode Island law voids any provision in a franchise agreement that restricts jurisdiction or venue to a forum outside of Rhode Island, or that requires the application of another state's laws, if a claim is otherwise enforceable under the Act.
The amendment's effectiveness is conditional. It is only effective to the extent that the jurisdictional requirements of the Rhode Island Franchise Investment Act are independently met, without relying on the amendment itself. This means that the underlying franchise agreement must already comply with Rhode Island law for the amendment to take effect.
In practical terms, this condition ensures that Azal Coffee franchisees in Rhode Island are protected by their state's franchise laws. It prevents the franchisor from using the amendment to circumvent Rhode Island's legal requirements. Prospective franchisees should carefully review the franchise agreement and any amendments with legal counsel to ensure full compliance with Rhode Island law.