Is the Bang Cookies Franchise Disclosure Document effective in Rhode Island?
Bang_Cookies Franchise · 2024 FDDAnswer from 2024 FDD Document
Rhode Island FDD Amendment
Amendments to the Bang Cookies Franchise Disclosure Document
Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:
- A. The Rhode Island Franchise Investment Act, R.I. Gen. Law Ch. 395 Sec. 19-28.1-14 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 the Rhode Island Franchise Investment Act.
- B. Any general release as a condition of renewal, termination or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
Source: Item 23 — RECEIPTS (FDD pages 56–245)
What This Means (2024 FDD)
According to Bang Cookies' 2024 Franchise Disclosure Document, the document includes a Rhode Island FDD Amendment. This amendment supplements Item 17, "Renewal, Termination, Transfer and Dispute Resolution," of the Franchise Agreement.
The amendment states that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of laws from another state is void with respect to claims enforceable under the Rhode Island Franchise Investment Act. Additionally, any general release required as a condition of renewal, termination, or transfer will be void concerning claims under the Rhode Island Franchise Investment Act.
This means that as a Bang Cookies franchisee in Rhode Island, you retain certain rights under Rhode Island law, regardless of what the standard franchise agreement might say. Specifically, you cannot be forced to litigate disputes outside of Rhode Island, nor can you be compelled to waive your rights under the Rhode Island Franchise Investment Act as a condition of renewing, terminating, or transferring your franchise.