Under what circumstances is a person not liable to a Bonchon franchisee for violating the Rhode Island Franchise Investment Act?

According to Bonchon's 2025 Franchise Disclosure Document, a person who violates any provision of the Rhode Island Franchise Investment Act is typically liable to the franchisee for damages, costs, and attorney's fees. However, there is an exception to this rule.

Specifically, a defendant will not be held liable if they can prove that the plaintiff (the franchisee) was already aware of the facts concerning the violation at the time it occurred. This means that if a Bonchon franchisee knows about a potential violation of the Act but proceeds anyway, they may not be able to recover damages from the violating party.

This provision highlights the importance of due diligence for prospective Bonchon franchisees. It suggests that franchisees should thoroughly investigate any potential issues or concerns before entering into the franchise agreement. If a franchisee is aware of a violation and still chooses to proceed, they may be waiving their right to seek legal recourse later on. This clause aims to prevent franchisees from claiming damages for issues they were already cognizant of, placing a burden on them to demonstrate their lack of prior knowledge regarding the violation.