Title 19, Title 19 Institutions

A provision of 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.

A condition, stipulation, or provision requiring a franchisee to waive compliance with, or relieving a person of, a duty of liability imposed by or a right provided by this act or a rule or order under this act is void. An acknowledgement provision, disclaimer or integration clau…

A franchisor shall not restrict a franchisee from associating with other franchisees or from participating in a trade association, or retaliate against a franchisee for engaging in these activities.

In connection with the offer or sale of a franchise it is unlawful for a person, directly or indirectly, to: (1) Employ a device, scheme, or artifice to defraud; (2) Make an untrue statement of material fact or omit to state a material fact necessary in order to make the statemen…

(a) The director may by order deny a franchise registration application or suspend or revoke the effectiveness of registration of a franchise if: (1) The franchisor failed to comply with a provision of this act or a rule, order, or condition of the director under this act; (2) Th…

The director upon a finding that it is in the public interest may issue an order summarily under § 19-28.1-18.

The legislature finds that franchisees may suffer substantial losses when the franchisor does not provide complete information regarding the franchisor and the franchise relationship. The legislature also finds that many franchisees lack bargaining power and purchase a franchise …

(a) The director may refer any evidence that is available concerning any violation of this act or any rule or order made under this act to the attorney general who may, with or without this reference, institute appropriate criminal proceedings under the act. (b) A person who will…

(a) A person who violates any provision of this act is liable to the franchisee for damages, costs, and attorneys and experts fees. In the case of a violation of § 19-28.1-5, § 19-28.1-8, or § 19-28.1-17(1) — (5), the franchisee may also sue for rescission. No person shall be lia…

An action under § 19-28.1-21 must be commenced not later than the earlier of: (1) Four (4) years after the act or transaction constituting the violation; or (2) Ninety (90) days after the receipt by the franchisee of a rescission offer in a form approved by the director.

Except as expressly provided in this act, no civil liability arises from a violation or any provision of this act. Nothing in the act limits liability that may exist under another statute or at common law. Prior law governs all actions based on facts occurring before July 22, 199…

In an administrative, civil, or criminal proceeding arising under this act, the burden of proving an exemption, or an exclusion from a definition, is on the person claiming it.

(a) Except as provided by subsection (c), the director may not enter an order under § 19-28.1-18 or § 19-28.1-19 without appropriate prior notice to all named persons, opportunity for hearing and written findings of fact and conclusion of law. (b) Notice required by this act is s…

(a) The director may make public or private investigations inside or outside this state or determine whether a person has violated, is violating, or is about to violate a provision of this act. The director may investigate to aid in the enforcement of this act or in prescribing r…

(a) The director may promulgate rules, forms, and orders necessary or appropriate to administer this act and may define terms, whether or not used in this act. The director may classify franchises, persons, and matters within the director’s jurisdiction and prescribe different ru…

(a) A person who offers or sells a franchise subject to the registration requirements of this act in this state shall file with the director an irrevocable consent to service of process appointing the director as the person’s agent to receive service of process in a civil action …

(a) The director shall charge and collect the fees fixed by this section. The director shall not refund fees. (b) The fee for filing an application for initial registration of a franchise under § 19-28.1-9 is six hundred dollars ($600). (c) The fee for filing a notice of exemptio…

When used in this act, unless the context otherwise requires: (1) “Act” means the Rhode Island Franchise Investment Act. (2) “Advertisement” means a communication published in connection with an offer or sale of a franchise. (3) “Affiliate” means a person controlling, controlled …

All fees shall be paid to the state treasurer and are hereby appropriated to the general fund.

To encourage uniform application and interpretation of this act and effective franchise regulation and enforcement, the director may cooperate with federal, state, or foreign agencies or administrators and law enforcement agencies, including: (1) Conducting joint examinations and…

A document is filed when it is received by the director.

This act shall be applied and construed with a view to uniformity among states enacting it. This act shall be liberally construed to effectuate its purposes.

If a provision of this act or its application to a person or circumstance is held invalid, the invalidity shall not affect other provisions or applications of this act that can be given effect without the invalid provision of application. To this end the provisions of this act ar…

(a) This act applies to a franchise that is offered or sold in this state. (b) A franchise is offered for sale in this state if an offer to sell is made or accepted in this state or an offer to buy is accepted in this state. (c) An offer to sell is made in this state if the offer…

It is unlawful for any person to offer or sell a franchise unless the offer is registered under this act or is exempt from registration under § 19-28.1-6.

The following transactions are exempt from the provisions of § 19-28.1-5: (1) The offer or sale of a franchise if all of the following conditions are satisfied: (i) Either the franchisor’s most recent audited financial statements show a net worth of at least ten million dollars (…

An offer or sale of a franchise is exempted from §§ 19-28.1-5, 19-28.1-8, 19-28.1-9, and 19-28.1-13 — 19-28.1-16 if: (1) It is offered or sold to a nonresident of this state; (2) The franchise business will not be operated wholly or partly in this state; (3) The offer or sale doe…

(a) It is unlawful to sell any franchise in this state without first providing a copy of a disclosure document reflecting all material changes together with a copy of all proposed agreements relating to the sale of the franchise, unless otherwise provided in subsection (b), to th…

(a) A registration application must include the disclosure document, the filing fee, and the consent to service of process. The director may require the filing of audited financial statements examined and reported upon by an independent certified public accountant and prepared in…