What is the meaning of 'Rider' in the context of the Cinch I.T. Multi-Unit Development Agreement?
Cinch_I_T Franchise · 2024 FDDAnswer from 2024 FDD Document
RIDER TO THE MULTI-UNIT DEVELOPMENT AGREEMENT FOR USE IN RHODE ISLAND
THIS RIDER (this "Rider") is made and entered into by and between CINCH FRANCHISE, LLC, a Massachusetts limited liability company with its principal place of business at 27 West Mountain Street, Worcester, Massachusetts 01606 ("CINCH I.T."), and the person(s) or entity identified as the developer ("Developer") with its principal place of business as set forth on Multi-Unit Development Agreement. In this Rider, "we," "us," and "our" refers to CINCH I.T.. "You" and "your" refers to Developer.
Source: Item 23 — RECEIPTS (FDD pages 60–269)
What This Means (2024 FDD)
According to Cinch I.T.'s 2024 Franchise Disclosure Document, a 'Rider' in the context of the Multi-Unit Development Agreement refers to an amendment that modifies the original agreement, particularly to address specific legal requirements or conditions within a certain state. In this case, the provided excerpt specifically mentions a 'Rider to the Multi-Unit Development Agreement for use in Rhode Island.'
This Rider is an agreement between Cinch I.T. and the Developer, and it serves to incorporate additional terms that are considered an integral part of the main Development Agreement. These terms can include modifications to termination clauses, governing law, and forum for litigation, ensuring compliance with state-specific franchise laws, such as the Rhode Island Franchise Investment Act. For instance, the Rhode Island Fair Dealership Law might require a 90-day notice of termination under certain circumstances, which would supersede any inconsistent requirements in the original Multi-Unit Development Agreement.
For a prospective Cinch I.T. multi-unit developer, understanding the implications of Riders is crucial, especially if planning to operate in states with specific franchise regulations. These Riders can alter the standard terms of the agreement, affecting aspects like termination conditions and legal jurisdictions. Therefore, it's important to carefully review any Riders applicable to the states in which they intend to develop franchises and seek legal counsel to fully understand their rights and obligations.