How does the Rhode Island Franchise Investment Act affect the Cinnabon Franchise Agreement for franchises offered and sold in Rhode Island or to Rhode Island residents?
Cinnabon Franchise · 2025 FDDAnswer from 2025 FDD Document
In recognition of the requirements of the Rhode Island Franchise Investment Act, §§ 19- 28.1-1 through 19-28.1-34, the Franchise Agreement, for franchises offered and sold in the State of Rhode Island or to Rhode Island residents, is amended to include the following:
- 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."
Source: Item 23 — Receipts (FDD pages 114–399)
What This Means (2025 FDD)
According to Cinnabon's 2025 Franchise Disclosure Document, the Rhode Island Franchise Investment Act impacts the Cinnabon Franchise Agreement for franchises offered and sold in Rhode Island or to Rhode Island residents.
Specifically, Section 19-28.1-14 of the Rhode Island Franchise Investment Act stipulates that any provision within the franchise agreement that restricts jurisdiction or venue to a location outside of Rhode Island, or mandates the application of laws from another state, is considered void. This applies specifically to claims that are otherwise enforceable under the Rhode Island Franchise Investment Act.
In practical terms, this means that if a Cinnabon franchisee in Rhode Island has a legal claim that falls under the Rhode Island Franchise Investment Act, they cannot be forced to litigate the issue in another state or under another state's laws. This provision ensures that Rhode Island franchisees have the right to pursue claims under their own state's laws and within their own jurisdiction, providing them with a degree of legal protection and convenience. This addendum is included to ensure compliance with Rhode Island law and to protect the rights of franchisees operating within the state.