What is the purpose of the Rhode Island addendum to the Epcon Communities Franchise Agreement?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
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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 Epcon Communities's 2025 Franchise Disclosure Document, the addendum to the franchise agreement for the state of Rhode Island modifies the standard agreement to comply with Rhode Island franchise law.
Specifically, the addendum addresses liability releases, ensuring that, with the exception of settlements for disputes under the Rhode Island Franchise Investment Act, releases do not relieve parties from liability imposed by the Act. It also clarifies that any franchise agreement provision restricting jurisdiction or venue to outside of Rhode Island, or requiring application of other states' laws, is void if it contradicts the Rhode Island Franchise Investment Act.
Furthermore, the addendum ensures that no statement or acknowledgment signed by the franchisee waives claims under state franchise law, including fraud claims, or disclaims reliance on franchisor statements. This provision takes precedence over any conflicting terms in other documents related to the franchise agreement, strengthening franchisee protections within Rhode Island.