What is the Rhode Island Securities Division's role regarding franchise documents for Dryject?
Dryject Franchise · 2025 FDDAnswer from 2025 FDD Document
ECT MANAGEMENT, LLC FRANCHISE AGREEMENT REQUIRED BY THE STATE OF RHODE ISLAND**
| (the "Agreement Date"), and amends the Franchise Agreement dated | , 20_ |
|---|---|
| (the "Agreement"), between DRYJECT MANAGEMENT, LLC | (the "Franchisor"), |
| and | |
| ("Franchisee"), whose mailing address is |
RHODE ISLAND LAW MODIFICATIONS
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- The Rhode Island Securities Division requires that certain provisions contained in franchise documents be amended to be consistent with Rhode Island law, including the Franchise Investment Act, R.I. Gen. Law. Ch. 395 Sec. 19-28.1-1 – 19-28.1-34. To the extent that the Agreement contains provisions that are inconsistent with the following, such provisions are hereby amended:
- a. If the Agreement requires litigation to be conducted in a forum other than the State of Rhode Island, the requirement is void under Rhode Island Franchise Investment Act Sec. 19-28.1-14.
- b. If the Agreement requires that it be governed by a state's law, other than the State of Rhode Island, to the extent that such law conflicts with Rhode Island Franchise Investment Act it is void under Sec. 19-28.1-14.
- c. If the Franchisee is required in this Agreement to execute a release of claims or to acknowledge facts that would negate or remove from judicial review any statement, misrepresentation or action that would violate the Act, or a rule of order under the Act, such release shall exclude claims arising under the Rhode Island Franchise Investment Act, and such acknowledgements shall be void with respect to claims under the Act.
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- Section 19-28.1-8 of the Rhode Island Franchise Investment Act requires a franchisor to give you a copy of the Franchise Disclosure Document at the earlier of: (i) the first personal meeting; (ii) 10 business days before the execution of the Franchise Agreement; or (iii) 10 business days before the payment of any consideration that relates to the franchise relationship.
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- Each provision of this Amendment shall be effective only to the extent that the jurisdictional requirements of the Rhode Island Franchise Investment Act, with respect to each such provision, are met independent of this Amendment. This Amendment shall have no force or effect if such jurisdictional requirements are not met.
Source: Item 8 — BUSINESS RELATIONSHIP (FDD pages 68–229)
What This Means (2025 FDD)
According to Dryject's 2025 Franchise Disclosure Document, the Rhode Island Securities Division mandates specific amendments to franchise documents to ensure compliance with Rhode Island law, particularly the Franchise Investment Act. These amendments address issues such as the location of litigation, the governing law of the agreement, and franchisee waivers of claims.
Specifically, the Rhode Island Securities Division requires that if the franchise agreement mandates litigation outside of Rhode Island, that requirement is void. Similarly, if the agreement is governed by laws other than those of Rhode Island and conflicts with the Rhode Island Franchise Investment Act, those provisions are also void. Furthermore, any franchisee release of claims that negates judicial review of actions violating the Act must exclude claims arising under the Rhode Island Franchise Investment Act.
Additionally, the Rhode Island Franchise Investment Act requires Dryject to provide a copy of the Franchise Disclosure Document to the prospective franchisee at the earlier of (1) the first personal meeting, (2) 10 business days before the execution of the Franchise Agreement, or (3) 10 business days before any payment related to the franchise relationship. These regulations ensure that franchisees are aware of their rights and protections under Rhode Island law and receive the necessary information to make informed decisions.
Dryject includes an addendum to the Franchise Disclosure Document for Rhode Island, highlighting that any litigation or arbitration will occur in Rhode Island or a mutually agreed-upon location, and the Franchise Agreement will be governed by Rhode Island law, as required by the Rhode Island Franchise Investment Act. This addendum aims to clarify and reinforce the franchisee's rights and the applicability of Rhode Island law within the franchise agreement.