Does the Rhode Island Addendum for Crisp & Green supersede other terms in documents related to the franchise?
Crisp_Green Franchise · 2024 FDDAnswer from 2024 FDD Document
Notwithstanding anything to the contrary set forth in the Crisp & Green Franchising LLC Area Development Agreement, the following provisions shall supersede any inconsistent provisions and apply to all Crisp & Green franchises offered and sold in the state of Rhode Island:
- The following paragraph is added to the end of Section 5:
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. The notice shall state all the reasons for termination, cancellation, non-renewal or substantial change in competitive circumstances and shall provide that the franchisee has 60 days in which to rectify any claimed deficiency and shall supersede the requirements of the Franchise Agreement to the extent they may be inconsistent with the Law's requirements. If the deficiency is rectified within 60 days the notice shall be void. The above-notice provisions shall not apply if the reason for termination, cancellation or nonrenewal is insolvency, the occurrence of an assignment for the benefit of creditors or bankruptcy. If the reason for termination, cancellation, nonrenewal or substantial change in competitive circumstances is nonpayment of sums due under the Franchise Agreement, Franchisee shall be entitled to written notice of such default, and shall have 10 days in which to remedy such default from the date of delivery or posting of such notice.
Source: Item 23 — RECEIPTS (FDD pages 66–252)
What This Means (2024 FDD)
According to Crisp & Green's 2024 Franchise Disclosure Document, the Rhode Island Addendum is designed to take precedence over any conflicting terms within the franchise agreement. Specifically, for franchises offered and sold in Rhode Island, the provisions outlined in the addendum will override any inconsistent provisions found in the standard Crisp & Green Franchising LLC Area Development Agreement. This ensures that the franchise operations comply with Rhode Island statutes and regulations.
One notable example provided in the addendum relates to non-renewal and termination. It adds a paragraph to Sections 14.01 and 15.01 of the franchise agreement, referencing Section 6-50-4 of the Rhode Island Fair Dealership Law. This law mandates that franchisees in certain situations must receive 90 days' notice of termination, cancellation, non-renewal, or substantial changes in competitive circumstances. The notice must detail the reasons for such actions and allow the franchisee 60 days to rectify any claimed deficiencies. These stipulations supersede any conflicting requirements in the original franchise agreement, providing additional protection to Crisp & Green franchisees in Rhode Island.
However, the notice provisions do not apply in cases of insolvency, assignment for the benefit of creditors, or bankruptcy. Additionally, if termination, cancellation, nonrenewal, or substantial change is due to nonpayment, the franchisee is entitled to written notice and a 10-day period to remedy the default. This careful balance ensures compliance with Rhode Island law while also protecting Crisp & Green's interests under specific circumstances. The Rhode Island Addendum serves to modify the original agreement to align with state-specific legal requirements.