Which sections of the Learningrx Franchise Agreement and Area Developer Agreement are amended in Rhode Island, according to the addendum?
Learningrx Franchise · 2025 FDDAnswer from 2025 FDD Document
RHODE ISLAND
§ 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." Item 17 (u), (v), (w) of the franchise disclosure Document, Section 18.06 of the Franchise Agreement and Section 10.02 of the Area Developer Agreement are amended accordingly to the extent required by law.
No statement, questionnaire, or acknowledgement 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 — RECEIPT (FDD pages 54–209)
What This Means (2025 FDD)
According to the 2025 Learningrx Franchise Disclosure Document, the Rhode Island addendum modifies specific sections of both the Franchise Agreement and the Area Developer Agreement to comply with Rhode Island law. Specifically, Item 17 (u), (v), (w) of the franchise disclosure Document, Section 18.06 of the Franchise Agreement and Section 10.02 of the Area Developer Agreement are amended. These amendments address concerns related to jurisdiction, venue, and the application of laws from other states, ensuring that Rhode Island franchisees are protected under the Rhode Island Franchise Investment Act.
This means that any provisions in the Learningrx agreements that might force a franchisee into a legal dispute outside of Rhode Island or require the application of another state's laws are void within Rhode Island. This change aims to protect the franchisee's rights and ensure fair legal proceedings within their home state. It also prevents Learningrx from enforcing clauses that could disadvantage a franchisee due to geographical or legal constraints.
Furthermore, the addendum clarifies that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under Rhode Island franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Learningrx. This provision is designed to prevent franchisees from inadvertently giving up their legal rights at the start of the franchise relationship. This protection supersedes any conflicting terms in any document executed in connection with the franchise, reinforcing the franchisee's ability to pursue legal remedies if necessary.