How are the Hck Hot Chicken Franchise Disclosure Document, Franchise Agreement, and Supplemental Agreements amended in Rhode Island, according to the Rhode Island Franchise Investment Act?
Hck_Hot_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
§ 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 this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." The FDD, the Franchise Agreement, and the Supplemental Agreements are amended accordingly to the extent required by law.
The above language has been included in this FDD as a condition to registration. The Franchisor and the Franchisee do not agree with the above language and believe that each of the provisions of the Franchise Agreement and the Supplemental Agreements, including all choice of law provisions, are fully enforceable. The Franchisor and the Franchisee intend to fully enforce all of the provisions of the Franchise Agreement, the Supplemental Agreements, and all other documents signed by them, including, but not limited to, all
Source: Item 22 — CONTRACTS (FDD pages 54–55)
What This Means (2025 FDD)
According to the 2025 Hck Hot Chicken Franchise Disclosure Document, the Rhode Island Franchise Investment Act stipulates that any provision in a 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 Act. Therefore, the Hck Hot Chicken Franchise Disclosure Document, the Franchise Agreement, and any Supplemental Agreements are amended to comply with this Rhode Island law.
However, the FDD also states that Hck Hot Chicken and the franchisee do not necessarily agree with this amendment. Hck Hot Chicken believes that all provisions of the Franchise Agreement and Supplemental Agreements, including choice of law provisions, are fully enforceable.
Hck Hot Chicken intends to fully enforce all provisions, including those related to venue, choice-of-law, arbitration, and other dispute resolution mechanisms, relying on federal pre-emption under the Federal Arbitration Act, despite the Rhode Island Franchise Investment Act's stipulations.