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For Chicken Guy franchisees in Rhode Island, what happens to any provision in the franchise agreement that restricts jurisdiction or venue to a forum outside of Rhode Island?

Chicken_Guy Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 1. The provisions of this Addendum form an integral part of, and are incorporated into, the Franchise Agreement. This Addendum is being executed because: (A) the offer or sale of a franchise to Franchisee was made in the State of Rhode Island; (B) Franchisee is a resident of the State of Rhode Island; and/or (C) the Franchised Restaurant will be located and/or operated, and/or all or part of the Protected Area will be located, in the State of Rhode Island.
  • 2. The following language is added to Section 31.D:
  • 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."
  • 3. Any capitalized terms that are not defined in this Addendum shall have the meaning given them in the Franchise Agreement. Except as expressly modified by this Addendum, the Franchise Agreement remains unmodified and in full force and effect. This Addendum may be executed in multiple counterparts, each of which when executed and delivered shall be deemed an original and all of which together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page of this Addendum by facsimile and any other electronic transmission (including PDF) shall be as effective as delivery of a manually executed counterpart of this Addendum.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 40–46)

What This Means (2025 FDD)

According to the 2025 Chicken Guy FDD, if a Chicken Guy franchisee is located in Rhode Island, any provision in the franchise agreement that restricts jurisdiction or venue to a forum outside of Rhode Island is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. This protection is provided under Section 19-28.1-14 of the Rhode Island Franchise Investment Act.

This means that a Chicken Guy franchisee in Rhode Island cannot be forced to litigate claims under the Rhode Island Franchise Investment Act in another state. This addendum ensures that Rhode Island franchisees have the right to resolve disputes within their own state's legal system, providing them with certain protections and conveniences.

This addendum is integrated into the franchise agreement and is executed because the franchise offer or sale was made in Rhode Island, the franchisee is a resident of Rhode Island, and/or the franchised restaurant or protected area is located in Rhode Island. The franchise agreement remains in full effect except as expressly modified by this addendum.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.