Under what condition is each provision of the Rhode Island amendment effective for Pearce Bespoke franchisees?
Pearce_Bespoke Franchise · 2025 FDDAnswer from 2025 FDD Document
- Each provision of this Addendum to the Disclosure Document shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Rhode Island Franchise Investment Act are met independently without reference to this Addendum to the Disclosure Document.
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AMENDMENT TO THE THE PEARCE BESPOKE FRANCHISING LLC FRANCHISE AGREEMENT REQUIRED BY THE STATE OF RHODE ISLAND
In recognition of the requirements of the Rhode Island Franchise Investment Act, the parties to the attached The Tox Franchising Group, LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
- The following language shall be added at the end of Section 20.3 of the Franchise Agreement:
Notwithstanding the above, Rhode Island franchisees are permitted to bring a lawsuit in Rhode Island for claims arising under the Rhode Island Franchise Investment Act.
- Each provision of this Amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Rhode Island Franchise Investment Act are met independently without reference to this Amendment.
Source: Item 22 — CONTRACTS (FDD page 39)
What This Means (2025 FDD)
According to Pearce Bespoke's 2025 Franchise Disclosure Document, each provision within the Rhode Island addendum to both the disclosure document and the franchise agreement is contingent upon meeting the jurisdictional requirements of the Rhode Island Franchise Investment Act. This condition must be satisfied independently, without relying on the addendum itself to meet these requirements.
For a prospective Pearce Bespoke franchisee in Rhode Island, this means that the protections and modifications outlined in the addendum, such as the ability to sue Pearce Bespoke in Rhode Island for claims arising under the Rhode Island Franchise Investment Act, are only applicable if the franchisee's situation independently meets the legal criteria for jurisdiction within Rhode Island. The amendment ensures that Rhode Island franchisees have the right to pursue legal claims within their state under specific conditions.
This stipulation prevents the addendum from being used to artificially create jurisdiction where it would not otherwise exist. The jurisdictional requirements must be met through other factors, such as the franchisee's location, the nature of the dispute, or other connections to the state. This ensures compliance with the Rhode Island Franchise Investment Act and protects the legal rights of franchisees within the state, provided that the necessary jurisdictional prerequisites are satisfied independently.