If a provision of the Stretch Zone agreement is contrary to applicable law, what happens to that provision?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
This Addendum to the Franchise Agreement is agreed to on between Stretch Zone Franchising, LLC, a Florida limited liability company ("we" "us" or "our") and ("you" or "your").
- The Rhode Island Securities Division requires that certain provisions contained in the Franchise Agreement be amended to be consistent with Rhode Island law, including the Franchise Investment Act, R. I. Gen. Law Ch. 395 Sec. 19-28.1-1 to 19-28.1-34 (the "Act"). To the extent that the Franchise Agreement contains provisions that are inconsistent with the Act, the provisions are amended:
(a) Venue
If the Franchise Agreement requires litigation or arbitration to be conducted in a forum other than the State of Rhode Island, the requirement is void under the Act.
(b) Governing Law
If the Franchise Agreement requires that it be governed by a state's law, other than the State of Rhode Island, to the extent that this law conflicts with the Act, the Act will control.
(c) Release of Claims
If you are required in the Franchise Agreement to sign a release of claims or to acknowledge facts that would negate or remove from judicia
Source: Item 8 — Receipts. Any sale made must be in compliance with § 683(8) of the Franchise Sale Act (N.Y. Gen. Bus. L. § 680 et seq.), which describes the time period a Franchise Disclosure Document (offering prospectus) must be provided to a prospective franchisee before a sale may be made. New York law requires a franchisor to provide the Franchise Disclosure Document at the earliest of the first personal meeting or ten (10) business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. (FDD pages 99–263)
What This Means (2025 FDD)
According to the 2025 Stretch Zone Franchise Disclosure Document, the Rhode Island Addendum addresses the scenario where provisions of the franchise agreement are inconsistent with Rhode Island law. Specifically, if the Franchise Agreement requires litigation or arbitration to occur outside of Rhode Island, that requirement is void under the Act. Similarly, if the Franchise Agreement is governed by a state's law other than Rhode Island's, and that law conflicts with the Act, the Act will take precedence. Finally, any requirement in the Franchise Agreement that the franchisee sign a release of claims or acknowledge facts that would remove judicial review is also subject to the Act.
This addendum ensures that Rhode Island franchisees are protected by their state's laws, regardless of what the standard Stretch Zone franchise agreement might stipulate. This is a common practice in franchising, as state laws vary and franchisors often use a standard agreement across all locations. Franchisees should always review any state-specific addenda to understand their rights and obligations within their particular jurisdiction.
For a prospective Stretch Zone franchisee in Rhode Island, this means that certain clauses in the standard franchise agreement that might conflict with Rhode Island law are automatically amended to comply with the state law. This provides a level of legal protection and ensures that the franchisee's rights under Rhode Island law are upheld. It is important for franchisees to carefully review the Rhode Island Addendum in conjunction with the main franchise agreement to fully understand the terms and conditions that apply to their franchise.