What specific act does the Rhode Island amendment to the City Publications Franchise Agreement reference?
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 Rhode Island amendment references the Rhode Island Franchise Investment Act. Specifically, the amendment addresses sections of the Franchise Agreement that require franchisees to sign a general release as a condition of renewal and transfer, clarifying that such releases do not cover claims arising under the Rhode Island Franchise Investment Act. The amendment also addresses sections of the Franchise Agreement that restrict jurisdiction or venue to a forum outside of Rhode Island or require the application of other states' laws, stating that these restrictions are void with respect to claims enforceable under the Rhode Island Franchise Investment Act.
For a prospective City Publications franchisee in Rhode Island, this means that certain clauses in the standard franchise agreement are modified to comply with Rhode Island law. The franchisee retains their rights under the Rhode Island Franchise Investment Act, regardless of any general release they might sign during renewal or transfer. Furthermore, they are not obligated to litigate or arbitrate claims under the Rhode Island Franchise Investment Act outside of Rhode Island, nor are they bound by the laws of another state for such claims.
This amendment ensures that City Publications franchisees in Rhode Island have the full protection of their state's franchise laws. It prevents the franchisor from enforcing provisions that would undermine those protections, such as requiring franchisees to waive their rights or litigate disputes in unfavorable jurisdictions. Prospective franchisees should carefully review this amendment with legal counsel to fully understand their rights and obligations under Rhode Island law.