For Ledgers franchisees in Rhode Island, what is the effect of Section 19-28.1-14 of the Rhode Island Franchise Investment Act on any restriction of choice of jurisdiction or venue?
Ledgers Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 17.m. of the Disclosure Document is revised to provide:
Section 19-28.1-14 of the Rhode Island Franchise Investment Act prohibits a franchisee to be restricted in choice of jurisdiction or venue. To the extent any such restriction is purported to be required by us, it is void with respect to all franchisees governed under the laws of Rhode Island.
Source: Item 22 — CONTRACTS (FDD page 46)
What This Means (2025 FDD)
According to Ledgers' 2025 Franchise Disclosure Document, Section 19-28.1-14 of the Rhode Island Franchise Investment Act impacts the choice of jurisdiction or venue for Rhode Island franchisees. Specifically, this section prohibits restricting a franchisee's choice of jurisdiction or venue.
This means that any clause in the Ledgers franchise agreement that attempts to limit a Rhode Island franchisee's ability to choose a specific jurisdiction or venue for legal proceedings is void and unenforceable under Rhode Island law. The FDD states that Item 17.m. of the Disclosure Document is revised to reflect this prohibition.
In effect, Rhode Island franchisees retain the right to pursue legal action against Ledgers in a jurisdiction and venue of their choosing, regardless of any conflicting terms in the franchise agreement. This protection ensures that franchisees are not forced to litigate disputes in a location that may be inconvenient or biased.