What does Rhode Island law state regarding jurisdiction or venue restrictions in Belocal's franchise agreement?
Belocal Franchise · 2025 FDDAnswer from 2025 FDD Document
The following are hereby added to Section 14.D.(1). of the Agreement: Rhode Island Law 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 Rhode Island Law.
Source: Item 22 — CONTRACTS (FDD page 71)
What This Means (2025 FDD)
According to Belocal's 2025 Franchise Disclosure Document, Rhode Island law addresses jurisdiction and venue restrictions within the franchise agreement. Specifically, the FDD includes an amendment to the standard franchise agreement that applies to franchisees operating in Rhode Island.
The amendment states that any provision in the Belocal franchise agreement that restricts jurisdiction or venue to a location outside of Rhode Island, or requires the application of laws from another state, is considered void under Rhode Island law if a claim is otherwise enforceable under Rhode Island law. This means that Belocal franchisees in Rhode Island have the right to pursue legal claims within the state, under Rhode Island law, regardless of what the standard franchise agreement might otherwise stipulate.
This protection ensures that Belocal franchisees in Rhode Island are not forced to litigate disputes in a distant or inconvenient forum, or under laws that may be less favorable to them. It also prevents the franchisee from waiving claims under Rhode Island franchise law or disclaiming reliance on statements made by Belocal during the franchise sales process.