In Rhode Island, does the general release required for renewal or assignment/transfer of a Caring Transitions franchise apply to liabilities under the Rhode Island Franchise Investment Act?
Caring_Transitions Franchise · 2025 FDDAnswer from 2025 FDD Document
The following additional disclosures are required by the Rhode Island Franchise Investment Protection Act:
The general release required as a condition of renewal and/or assignment/transfer shall not apply to any liability under the Rhode Island Franchise Investment Act.
Section 19-28.1-14 of the Rhode Island Franchise Investment Act 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 this Act."
To the extent this Addendum is inconsistent with any terms or conditions of the Franchise Disclosure Document, the Franchise Agreement, or any exhibits or attachments thereto, the terms of this Addendum shall control.
RHODE ISLAND ADDENDUM TO FRANCHISE AGREEMENT
The following terms amend the Franchise Agreement to which this addendum is attached, for the purpose of complying with the Rhode Island Franchise Investment Act, and are hereby incorporated into the Franchise Agreement by this reference. The terms in this addendum shall control in the event of conflicting terms in the Franchise Agreement.
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- A general release required as a condition of renewal and/or assignment/transfer shall not apply to any claim or liability arising under the Rhode Island Franchise Investment Protection Act.
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- Any provision of this Agreement restricting jurisdiction or venue to a forum outside the State of Rhode Island or requiring the application of the laws of a state other than Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Protection Act.
The parties are signing this addendum concurrently with the Franchise Agreement to which it is attached.
Source: Item 22 — CONTRACTS (FDD page 49)
What This Means (2025 FDD)
According to Caring Transitions' 2025 Franchise Disclosure Document, the general release required for renewal or assignment/transfer of a franchise in Rhode Island does not apply to liabilities under the Rhode Island Franchise Investment Act. This protection is explicitly stated in the Rhode Island Addendum to the Franchise Agreement. This addendum is designed to ensure compliance with the Rhode Island Franchise Investment Protection Act.
Specifically, the addendum clarifies that any general release signed as a condition of renewing or transferring the franchise will not waive any rights or claims a franchisee may have under the Rhode Island Franchise Investment Protection Act. This means that even if a franchisee signs a release, they still retain the ability to pursue legal action related to violations of the Rhode Island Franchise Investment Protection Act.
Furthermore, the Rhode Island Addendum also addresses the issue of jurisdiction and governing law. It states that any provision in the Franchise Agreement that restricts jurisdiction or venue to a location outside of Rhode Island, or requires the application of laws from another state, is void with respect to claims enforceable under the Rhode Island Franchise Investment Protection Act. This ensures that Rhode Island franchisees can pursue claims within their own state and under their own state's laws, regardless of what the standard franchise agreement might otherwise stipulate. This addendum takes precedence over any conflicting terms in the standard Franchise Agreement, providing additional protection to franchisees in Rhode Island.