What Rhode Island Act is referenced in the Black Bear Diner addendum?
Black_Bear_Diner Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of The Rhode Island Franchise Investment Act §19-
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.
Source: Item 23 — RECEIPT (FDD pages 56–243)
What This Means (2025 FDD)
According to the 2025 Black Bear Diner Franchise Disclosure Document, the Rhode Island addendum references "The Rhode Island Franchise Investment Act." Specifically, the addendum modifies the franchise agreement to exclude claims arising under this Act from the general release required for renewal and transfer. It also voids any restrictions on jurisdiction or venue outside of Rhode Island, or the application of other state laws, concerning claims enforceable under the Act.
This means that if a Black Bear Diner franchisee in Rhode Island has a claim enforceable under The Rhode Island Franchise Investment Act, they are not required to waive those rights in order to renew or transfer their franchise. Furthermore, the franchisee can pursue those claims in Rhode Island courts under Rhode Island law, regardless of what the standard franchise agreement might otherwise stipulate.
This addendum ensures that the franchisee's rights under Rhode Island law are protected, superseding any conflicting terms in the standard franchise agreement. The provisions of the addendum are effective only to the extent that the jurisdictional requirements of the Rhode Island Franchise Investment Act are met independent of the addendum.