What Rhode Island statute regarding jurisdiction and venue is referenced in the Pearce Bespoke addendum?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- Item 17 shall be supplemented by the addition of the following language at the end of Item 17:
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 this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act."
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to the 2025 Pearce Bespoke FDD, the addendum for Rhode Island references Section 19-28.1-14 of the Rhode Island Franchise Investment Act. This section stipulates that any provision within a franchise agreement that restricts jurisdiction or venue to a location outside of Rhode Island, or mandates the application of laws from another state, is considered void if a claim is otherwise enforceable under the Act.
For a prospective Pearce Bespoke franchisee in Rhode Island, this means that despite any clauses in the franchise agreement that might specify out-of-state venues or laws, they retain the right to sue Pearce Bespoke in Rhode Island under the Rhode Island Franchise Investment Act. This provision aims to protect franchisees by ensuring they can pursue legal claims within their own state, avoiding the potential burden and expense of litigating in a distant jurisdiction.
This protection is significant because it prevents Pearce Bespoke from enforcing clauses that could disadvantage a franchisee's ability to seek legal recourse. The addendum ensures that Rhode Island franchisees are not bound by venue or choice of law provisions that would force them to litigate disputes outside of Rhode Island, providing a more accessible legal avenue for claims arising under the Rhode Island Franchise Investment Act.