What Rhode Island law does the addendum to the Management Recruiters Franchise Agreement address?
Management_Recruiters Franchise · 2024 FDDAnswer from 2024 FDD Document
ADDENDUM TO THE MRI FRANCHISE AGREEMENT REQUIRED BY THE STATE OF RHODE ISLAND
In recognition of the requirements of the Rhode Island Franchise Investment Act, §§ 19 28.1‐1 through 19‐ 28.1‐34, the parties to the attached Franchise Agreement (the "Agreement") agree as follows:
The following is added to Section 20.3 of the Franchise Agreement, in place of any conflicting provisions:
§ 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."
This amendment will be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Rhode Island Franchise Investment Act, §§ 19‐28.1‐1 through 19‐ 28.1‐ 34, are met independently without reference to this amendment.
Source: Item 23 — RECEIPTS (FDD pages 67–327)
What This Means (2024 FDD)
According to Management Recruiters' 2024 Franchise Disclosure Document, the addendum to the Management Recruiters Franchise Agreement required by the state of Rhode Island addresses the Rhode Island Franchise Investment Act, specifically §§ 19‐28.1‐1 through 19‐28.1‐34. This addendum modifies Section 20.3 of the Franchise Agreement.
The addendum includes a provision from § 19‐28.1‐14 of the Rhode Island Franchise Investment Act, which states that any clause in a Franchise Agreement that restricts jurisdiction or venue to a location outside of Rhode Island or requires the application of laws from another state is void if it contradicts the Act.
This modification is only effective if the jurisdictional requirements of the Rhode Island Franchise Investment Act, §§ 19‐28.1‐1 through 19‐28.1‐34, are independently met, without relying on the addendum itself. This ensures that Management Recruiters franchisees in Rhode Island are protected by Rhode Island law and have the right to pursue claims within the state, regardless of conflicting terms in the standard franchise agreement.