Who are the parties involved in the Rhode Island Addendum to the Area Development Agreement for Stretch Zone?
Stretch_Zone Franchise · 2025 FDDAnswer from 2025 FDD Document
RHODE ISLAND ADDENDUM TO FRANCHISE AGREEMENT
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 judicial review any statement, misrepresentation or action that would violate the Act, or a rule or order under the Act, the release exclude claims arising under the Act, and the acknowledgments are void as to claims under the Act.
- Each provision of this Amendment is effective only to the extent that the jurisdictional requirements of the Acts applicable to the provision are met independent of this Amendment. This Amendment has no force or effect if the jurisdictional requirements are not independently met.
Each of the undersigned acknowledges having read this Addendum, understands and consents to be bound by all of its terms.
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)
Based on the 2025 Franchise Disclosure Document, the Rhode Island Addendum to the Franchise Agreement for Stretch Zone is made between Stretch Zone Franchising, LLC, identified as "we," "us," or "our," and the franchisee, referred to as "you" or "your."
This addendum is required because the Rhode Island Securities Division mandates that certain provisions within the standard Franchise Agreement be amended to comply with Rhode Island law, specifically the Franchise Investment Act, R. I. Gen. Law Ch. 395 Sec. 19-28.1-1 to 19-28.1-34. The addendum addresses potential inconsistencies between the Franchise Agreement and the Act, particularly concerning venue, governing law, and release of claims.
Specifically, the addendum ensures that any requirement for litigation or arbitration to occur outside of Rhode Island is void. It also stipulates that Rhode Island law will take precedence if the agreement's governing law conflicts with the Rhode Island Franchise Investment Act. Furthermore, any release of claims required in the Franchise Agreement will exclude claims arising under the Act, protecting the franchisee's rights under Rhode Island law.
This addendum is only effective if the jurisdictional requirements of the applicable Acts are independently met, meaning it has no effect if those requirements are not met. Both Stretch Zone Franchising, LLC and the franchisee must acknowledge that they have read, understood, and consent to be bound by the terms of the addendum.