What is the 'Act' referred to in the Rhode Island addendum to the Epcon Communities disclosure document?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- The first chart of Item 17 (Franchise Agreement) of the disclosure document is hereby modified by adding the following to the end of the "Summary" column for item "m.":
- "Except for a release given in connection with the settlement of disputes, claims or civil lawsuits arising or brought under the Rhode Island Franchise Investment Act (the "Act"), the release described above may not relieve any person from liability imposed by the Act or any rule or order under the Act."
-
- The first chart of Item 17 (Franchise Agreement) of the disclosure document is hereby modified by adding the following to the end of the "Summary" column for items "v." and "w.":
- "Provided, however, that Section 19-28.1-14 of the Rhode Island Franchise Investment Act provides that a provision in a franchise agreement restricting jurisdiction or venue to a forum outside of the State of Rhode Island or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act."
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the "Act" referenced in the Rhode Island addendum refers to the Rhode Island Franchise Investment Act. This is clarified in modifications to Item 17 of the disclosure document, specifically concerning releases and restrictions on jurisdiction or venue.
For a prospective Epcon Communities franchisee in Rhode Island, this means that any release signed, except in cases of settling disputes or lawsuits under the Rhode Island Franchise Investment Act, cannot relieve liability imposed by this Act. Furthermore, any franchise agreement provision that restricts jurisdiction or venue to a location outside of Rhode Island, or requires the application of another state's laws, is void if it contradicts the Rhode Island Franchise Investment Act.
This addendum ensures that Epcon Communities franchisees in Rhode Island retain their rights and protections under Rhode Island law, preventing the franchise agreement from overriding these legal safeguards. It also means that franchisees cannot waive claims under state franchise law, including those related to fraud, or disclaim reliance on statements made by Epcon Communities or its representatives.