Under what circumstances is a general release related to renewal, termination, or transfer of a Bang Cookies franchise considered void 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's 2024 Franchise Disclosure Document, a general release required as a condition of renewal, termination, or transfer of a franchise will be considered void in Rhode Island with respect to claims made under the Rhode Island Franchise Investment Act. This means that if a franchisee in Rhode Island signs a general release as part of renewing, terminating, or transferring their Bang Cookies franchise, that release will not prevent them from pursuing claims against Bang Cookies under the Rhode Island Franchise Investment Act.
This amendment to Item 17 of the FDD specifically addresses franchisee rights in Rhode Island, ensuring that the standard general release doesn't inadvertently waive their ability to make claims under the state's franchise laws. This is particularly important because franchise laws are designed to protect franchisees from unfair practices by franchisors. By voiding the general release in this specific context, Rhode Island franchisees retain their legal recourse.
For a prospective Bang Cookies franchisee in Rhode Island, this provision offers a degree of protection. It means that even if they sign a general release during renewal, termination, or transfer, they still maintain the right to bring claims against Bang Cookies under the Rhode Island Franchise Investment Act. This could be relevant if, for example, the franchisee believes Bang Cookies violated the Act in the course of the franchise relationship or in the termination process. Franchisees should consult with a legal professional to fully understand their rights and obligations under the Rhode Island Franchise Investment Act.