What law is referenced in the Rhode Island addendum to the Epcon Communities Franchise Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO EPCON COMMUNITIES FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF RHODE ISLAND
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- 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."
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- 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."
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- No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 86–280)
What This Means (2025 FDD)
According to the 2025 Epcon Communities Franchise Disclosure Document, the Rhode Island addendum references the Rhode Island Franchise Investment Act. Specifically, the addendum modifies the franchise agreement to ensure compliance with this Act.
The addendum stipulates that releases, except those related to settlements of disputes under the Rhode Island Franchise Investment Act, cannot relieve parties from liabilities imposed by the Act. This protects franchisees by preventing unintentional waivers of their rights under the Act.
Additionally, the addendum addresses venue and jurisdiction, stating that any franchise agreement provision restricting these to outside of Rhode Island or requiring application of other states' laws is void concerning claims enforceable under the Rhode Island Franchise Investment Act. This ensures that Rhode Island franchisees can pursue claims within their own state under Rhode Island law.
Finally, the addendum clarifies that no statement or acknowledgment signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on franchisor statements. This provision reinforces franchisee protections against inadvertently relinquishing legal rights or claims.