In the Rhode Island addendum, how is Item 17 of the Epcon Communities disclosure document modified?
Epcon_Communities Franchise · 2025 FDDAnswer from 2025 FDD Document
ADDENDUM TO EPCON COMMUNITIES FRANCHISING, LLC DISCLOSURE DOCUMENT FOR THE STATE OF RHODE ISLAND
-
- 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."
-
- 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, Item 17 is modified by the Rhode Island addendum. The first chart of Item 17, which discusses the Franchise Agreement, is modified in three specific ways for franchisees in Rhode Island. These modifications primarily concern waivers, jurisdiction, and the application of Rhode Island's franchise laws.
First, the addendum clarifies the scope of release agreements. A general release, typically included in franchise agreements, will not relieve any party from liabilities imposed by the Rhode Island Franchise Investment Act, except in cases of settlements for disputes, claims, or lawsuits arising under this Act. This ensures that franchisees retain their rights and protections under Rhode Island law, even if they sign a general release.
Second, the addendum addresses venue and jurisdiction. It states that any provision in the franchise agreement that restricts jurisdiction or venue to a forum outside of Rhode Island, or requires the application of laws from another state, is void with respect to 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 Rhode Island law, regardless of what the franchise agreement might otherwise stipulate.
Finally, the addendum specifies that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Epcon Communities or its representatives. This provision reinforces the franchisee's right to legal recourse and ensures that franchisees cannot inadvertently forfeit their legal protections through standard paperwork.