What Rhode Island statute is recognized in the amendment to the City Publications Franchise Agreement?
City_Publications Franchise · 2025 FDDAnswer from 2025 FDD Document
This Amendment to the Franchise Agreement is agreed to this day of, 20, between CITY PUBLICATIONS FRANCHISE GROUP, INC. and to amend and revise said Franchise Agreement as follows: 1. In recognition of the requirements of The Rhode Island Franchise Investment Act §19-28.1-14, the Franchise Agreement for CITY PUBLICATIONS FRANCHISE GROUP, INC. shall be amended as follows: ◼ Sections 5B.10 and 20B.2 of the Franchise Agreement require Franchisee to sign a general release as a condition of renewal and transfer of the franchise; such release shall exclude claims arising under The Rhode Island Franchise Investment Act. ◼ Sections 24A and 24B of the Franchise Agreement shall be amended to state that restricting jurisdiction or venue to a forum outside the state of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under The Rhode Island Franchise Investment Act.
Source: Item 23 — RECEIPT (FDD pages 39–129)
What This Means (2025 FDD)
According to City Publications' 2025 Franchise Disclosure Document, the amendment to the Franchise Agreement for the state of Rhode Island recognizes the Rhode Island Franchise Investment Act §19-28.1-14.
This recognition has specific implications for City Publications franchisees in Rhode Island. The amendment clarifies that any general release required for renewal or transfer of the franchise will not apply to claims arising under the Rhode Island Franchise Investment Act. This ensures that franchisees retain their rights to pursue claims under this Act, even if they sign a general release for other matters.
Additionally, the amendment 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 Act. This means that City Publications franchisees in Rhode Island can pursue legal action within the state under the Rhode Island Franchise Investment Act, regardless of what the standard Franchise Agreement might stipulate.
These amendments collectively strengthen the protections afforded to City Publications franchisees in Rhode Island under the Rhode Island Franchise Investment Act, ensuring that certain rights and remedies remain available to them despite potentially conflicting terms in the standard Franchise Agreement.