What is the relationship between the Epcon Communities Franchise Agreement and the Rhode Island Franchise Investment Act?
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' 2025 Franchise Disclosure Document, the Franchise Agreement is explicitly modified by the Rhode Island Franchise Investment Act to protect franchisees' rights within that state. These modifications are detailed in an addendum specific to Rhode Island.
Specifically, the addendum clarifies that releases signed by franchisees, except those related to settlements of disputes under the Act, cannot relieve any party from liabilities imposed by the Rhode Island Franchise Investment Act. This ensures that franchisees retain their rights and protections under state law, even when signing standard release forms.
Furthermore, any provision in the Epcon Communities Franchise Agreement that restricts jurisdiction or venue to a location outside of Rhode Island, or requires the application of another state's laws, is void concerning claims enforceable under the Rhode Island Franchise Investment Act. This means Rhode Island franchisees have the right to pursue legal claims within their own state under the protections of their state's franchise laws. The addendum also states that no statement, questionnaire, or acknowledgment can waive claims under state franchise law, including fraud, or disclaim reliance on franchisor statements, superseding any conflicting terms in other documents.