Which article in the Circle K Franchise Agreement is deleted and substituted by the Rhode Island Addendum?
Circle_K Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum will apply to franchises sold in the state of Rhode Island and will be for the purpose of complying with Rhode Island statutes and regulations. Notwithstanding anything which may be contained in the body of the Franchise Agreement to the contrary, the Agreement will be amended to include the following:
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- Article 20.5 is hereby deleted in its entirety and the following is substituted in its place:
- 20.5 Governing Law. Except to the extent governed by the United States Trademark Act of 1946 (Lanham Act, 15 U.S.C. § 1051 et seq.), and the Federal Arbitration Act (9 U.S.C. § 1, et seq.), or matters arising under the Rhode Island Franchise Investment Act which shall be governed thereby, this Agreement and the relationship between the Franchisor and Franchisee will be governed by the laws of the state of Arizona.
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- In all other respects, the Franchise Agreement will be construed and enforced according to its terms.
Source: Item 22 — CONTRACTS (FDD page 100)
What This Means (2025 FDD)
According to Circle K's 2025 Franchise Disclosure Document, Article 20.5 of the Franchise Agreement, concerning governing law, is deleted in its entirety and substituted by the Rhode Island Addendum. This change is made to comply with Rhode Island statutes and regulations. The substituted article specifies that the agreement will be governed by the laws of Arizona, except for matters arising under the Rhode Island Franchise Investment Act, which will be governed by that Act. This ensures that the franchise agreement adheres to local laws within Rhode Island.
This modification means that while the general agreement is under Arizona law, any legal issues specifically related to the Rhode Island Franchise Investment Act will be handled under Rhode Island law. This is important for franchisees in Rhode Island as it protects their rights under the state's franchise laws. Without this addendum, franchisees might have to navigate legal disputes under different state laws, which could be more complex and potentially less favorable.
For a prospective Circle K franchisee in Rhode Island, this addendum provides an added layer of legal protection and clarity. It ensures that certain aspects of their franchise agreement are governed by Rhode Island law, offering a more familiar and accessible legal framework for resolving disputes related to franchise investments within the state. This is a beneficial provision that aligns with standard franchise practices of tailoring agreements to comply with local regulations, thereby protecting both the franchisor and franchisee.