For Crowne Plaza franchises in Rhode Island, is a License Agreement provision restricting jurisdiction or venue to a forum outside of Rhode Island enforceable?

According to the 2025 Crowne Plaza Franchise Disclosure Document, specifically the Rhode Island Addendum, a provision in the License Agreement that restricts jurisdiction or venue to a forum outside of Rhode Island is not enforceable with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act. This means that if a Crowne Plaza franchisee in Rhode Island has a legal claim that falls under this Act, they cannot be forced to resolve the dispute in another state or under another state's laws. This protection extends to the Guaranty as well.

This provision is designed to protect Crowne Plaza franchisees in Rhode Island from being disadvantaged by having to litigate or arbitrate disputes in a distant or unfamiliar jurisdiction. It ensures that Rhode Island franchisees can pursue their legal rights within the state's legal system, which may be more convenient and cost-effective for them. The Rhode Island Franchise Investment Act aims to create a fairer balance of power between franchisors and franchisees by preventing franchisors from imposing unfavorable legal terms.

Furthermore, any provision in the Crowne Plaza License Agreement that designates the governing law as that of any state other than Rhode Island is deleted for licenses issued in Rhode Island. This reinforces the principle that Rhode Island law will govern franchise agreements within the state, providing additional legal certainty and protection for franchisees. This amendment ensures that Crowne Plaza franchisees operating in Rhode Island are subject to Rhode Island law, regardless of what the standard franchise agreement might state.