What must a franchisee acknowledge in the Rhode Island addendum for a Black Bear Diner franchise?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
Sections 4.2 and 18.2 of the Franchise Agreement require Franchisee to sign a general release as a condition of renewal and transfer of the franchise; such release shall exclude claims
28.1-14, the Franchise Agreement for BBDI LLC shall be amended as follows:
arising under The Rhode Island Franchise Investment Act.
Sections 22.2 and 22.7 of the Franchise Agreement shall be amended to state that restricting jurisdiction or venue to a forum outside the state of Rhode Island 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.
Each provision of this Addendum shall be effective only to the extent that the jurisdictional requirements of the Rhode Island Franchise Investment Act applicable to the provisions are met independent of this Addendum. To the extent this Addendum shall be deemed to be inconsistent with any terms or conditions of said Franchise Agreement or exhibits or attachments thereto, the terms of this Addendum shall govern.
[signature page follows]
IN WITNESS WHEREOF, each of the undersigned hereby acknowledges having read this Addendum, understands and consents to be bound by all of its terms.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 FDD, a Black Bear Diner franchisee in Rhode Island must acknowledge having read the Rhode Island addendum and agree to be bound by its terms. This acknowledgment is confirmed by their signature on the addendum.
The Rhode Island addendum modifies specific sections of the standard Black Bear Diner franchise agreement to comply with Rhode Island law. Specifically, it amends sections 4.2 and 18.2 to exclude claims arising under The Rhode Island Franchise Investment Act from the general release required for franchise renewal and transfer. Additionally, it amends sections 22.2 and 22.7 to ensure that any clauses restricting jurisdiction or venue to outside of Rhode Island, or requiring the application of other states' laws, are void with respect to claims enforceable under The Rhode Island Franchise Investment Act.
The addendum also states that its provisions are effective only to the extent that they meet the jurisdictional requirements of the Rhode Island Franchise Investment Act. In case of any inconsistency between the addendum and the franchise agreement, the terms of the addendum will take precedence. This ensures that the franchisee's rights under Rhode Island law are protected and that the franchise agreement complies with state regulations.