Does Bambu agree with the Rhode Island Franchise Investment Act's provision regarding jurisdiction or venue restrictions in franchise agreements?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
The following statement is added 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."
The preceding language has been included in this Disclosure Document as a condition to registration. We and you do not agree with the above language and believe that each of the provisions of the Franchise Agreement, including all venue provisions, are fully enforceable. We and you intend to fully enforce all of the provisions of the Franchise Agreement, and all other documents signed by us, including but not limited to, all venue, choice-of-law, arbitration provisions and other dispute avoidance and resolution provisions and to rely on federal pre-emption under the Federal Arbitration Act.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu does not agree with Section 19-28.1-14 of the Rhode Island Franchise Investment Act. This act stipulates that any franchise agreement provision restricting jurisdiction or venue to a location outside of Rhode Island, or requiring the application of another state's laws, is void concerning claims enforceable under the Act.
Bambu includes this language in its Disclosure Document as a condition of registration in Rhode Island. However, Bambu maintains that all provisions of its Franchise Agreement, including venue provisions, are fully enforceable.
Bambu intends to enforce all provisions of the Franchise Agreement and related documents, including those related to venue, choice-of-law, arbitration, and other dispute resolution mechanisms. Bambu plans to rely on federal pre-emption under the Federal Arbitration Act, which could potentially override the Rhode Island Franchise Investment Act.