What specific law does the general release not apply to for Punch King Fitness?

According to Punch King Fitness's 2024 Franchise Disclosure Document, a general release required as a condition of renewal, assignment, or transfer does not apply to any claim or liability arising under the Rhode Island Franchise Investment Act. This means that if a Punch King Fitness franchisee in Rhode Island is asked to sign a general release as part of renewing their franchise agreement, or when assigning or transferring the franchise, that release cannot prevent them from pursuing claims related to violations of the Rhode Island Franchise Investment Act.

This protection is specifically outlined in the Rhode Island Addendum to the Franchise Agreement. It ensures that franchisees in Rhode Island retain their rights under the state's franchise law, even if they sign a general release. This addendum is designed to comply with the Rhode Island Franchise Investment Act, which aims to protect franchisees from unfair practices.

For a prospective Punch King Fitness franchisee in Rhode Island, this provision offers an important safeguard. It means that they cannot be forced to waive their rights under the Rhode Island Franchise Investment Act through a general release, preserving their ability to take legal action if they believe the franchisor has violated that law. Franchisees should consult with an attorney to fully understand their rights and the implications of this addendum.