What Rhode Island Act is recognized in the Clear Pest Pros Franchise Agreement addendum?
Clear_Pest_Pros Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO THE FRANCHISE AGREEMENT FOR USE IN RHODE ISLAND
This is a Rider to the Franchise Agreement which is being executed concurrently with this Rider, between Franchisor and Franchisee.
Notwithstanding anything to the contrary in the Franchise Agreement, in the event of a conflict between the terms of this Rider and the terms of the Franchise Agreement, the terms of this Rider shall control and supersede the Franchise Agreement. Any terms not defined herein shall have the same meanings as in the Franchise Agreement and any references to sections and paragraphs refer to the sections and paragraphs of the Franchise Agreement unless stated otherwise.
In recognition of the requirements of the State of Rhode Island Franchise Investment Act §19-28.1 et seq., the Franchise Agreement for Safer Home Services International, LLC, for use in the State of Rhode Island is amended as follows:
- The following language is added at the end of Section 15.I. and Section 15.K. of the Agreement:
§19-28.1-21 of the Rhode Island Franchise Investment Act provides that (a) a person who violates any provision of this act is liable to the franchisee for damages, costs, and attorneys and experts fees. In the case of a violation of §§19-28.1-5, 19-28.1-8, or 19-28.1-17(1)- (5), the franchisee may also sue for rescission. No person shall be liable under this section if the defendant proves that the plaintiff knew the facts concerning the violation. (b) Every person who directly or indirectly controls a person liable under this section, every principal executive officer or director of the liable person, every person occupying a similar status or performing similar functions, and every agent or employee of a liable person, who materially aids in the act or transaction constituting the violation, is also liable jointly and severally with and to the same extent as the person liable under this section, unless the agent, employee, officer, or director proves he or she did not know, and in the exercise of reasonable care could not have known of the existence of the fact by reason of which the liability is alleged to exist.
- The following language is added at the end of Section 15.F and Section 15.H. of the Agreement:
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to Clear Pest Pros's 2025 Franchise Disclosure Document, the addendum to the franchise agreement for use in Rhode Island recognizes the requirements of the State of Rhode Island Franchise Investment Act §19-28.1 et seq. This act amends the franchise agreement for Safer Home Services International, LLC, when used in Rhode Island.
Specifically, the addendum includes language that references §19-28.1-21 of the Rhode Island Franchise Investment Act. This section stipulates that a person who violates any provision of the act is liable to the franchisee for damages, costs, and attorneys' and experts' fees. Furthermore, in cases of violation of §§19-28.1-5, 19-28.1-8, or 19-28.1-17(1)-(5), the franchisee has the right to sue for rescission. However, no person is liable if the defendant proves that the plaintiff knew the facts concerning the violation.
The addendum also clarifies that every person who directly or indirectly controls a person liable under this section, including principal executive officers, directors, and agents or employees who materially aid in the act or transaction constituting the violation, is jointly and severally liable. This liability extends to the same extent as the person liable under this section, unless the agent, employee, officer, or director proves they did not know, and could not have known with reasonable care, about the existence of the fact causing the liability.
For a prospective Clear Pest Pros franchisee in Rhode Island, this means that the franchise agreement is specifically amended to comply with Rhode Island law, providing certain protections and remedies in case of violations of the Franchise Investment Act. It also clarifies the liabilities of various parties involved in the franchise operation and ensures that franchisees are aware of their rights under Rhode Island law.