Regarding non-renewal and termination of a Crisp & Green franchise, which sections of the Franchise Agreement are amended by the addition of a new paragraph?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
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ADDENDUM TO THE CRISP & GREEN FRANCHISE AGREEMENT FOR THE STATE OF RHODE ISLAND
This Addendum pertains to franchises sold in the State of Rhode Island and is for the purpose of complying with Rhode Island statutes and regulations. This Addendum shall be of no force and effect unless the jurisdictional requirements of the Rhode Island laws applicable to franchises and any regulations thereunder are met independently without reference to this Addendum.
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- BACKGROUND. Franchisor and Franchisee are parties to that certain Franchise Agreement dated ____________________________________
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- NON-RENEWAL AND TERMINATION. The following paragraph is added to the end of Sections 14.01 and 15.01:
Section 6-50-4 of the Rhode Island Fair Dealership Law includes the requirement that, in certain circumstances, a franchisee receive 90 days' notice of termination, cancellation, non-renewal or substantial change in competitive circumstances.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to the 2024 Crisp & Green Franchise Disclosure Document, specific sections of the Franchise Agreement are amended by adding new paragraphs in certain states. For franchisees in Rhode Island, the addendum states that a new paragraph is added to the end of Sections 14.01 and 15.01 of the Franchise Agreement. These sections likely pertain to non-renewal and termination, as indicated in the addendum's title, addressing compliance with Rhode Island statutes and regulations. The added paragraph references Section 6-50-4 of the Rhode Island Fair Dealership Law, which mandates that franchisees receive 90 days' notice of termination, cancellation, non-renewal, or substantial changes in competitive circumstances in certain situations.
The notice must detail all reasons for such actions and allow the franchisee 60 days to rectify any claimed deficiency, superseding any inconsistent requirements in the Franchise Agreement. If the franchisee corrects the deficiency within 60 days, the notice becomes void. However, these notice provisions do not apply in cases of insolvency, assignment for the benefit of creditors, or bankruptcy.
Furthermore, if termination, cancellation, non-renewal, or substantial change is due to nonpayment, the franchisee is entitled to written notice of the default and has 10 days to remedy it from the date of the notice. This amendment ensures that Crisp & Green complies with Rhode Island's Fair Dealership Law, providing franchisees with specific protections and notice periods related to termination and non-renewal, which are crucial for the franchisee to understand their rights and obligations.