Section 19-28.1-1. – Short title.

§ 19-28.1-1. Short title. This chapter shall be known and may be cited as the “Rhode Island Franchise Investment Act”. History of Section.P.L. 1993, ch. 395, § 2.

Section 19-28.1-10. – Negotiated changes permitted.

§ 19-28.1-10. Negotiated changes permitted. This act does not preclude negotiation of terms and conditions of a franchise before it is sold. After the initial offer, a franchisor need not amend its disclosure document to negotiate with an offeree, or make supplementary disclosure to that offeree, by reason of a change negotiated in the terms […]

Section 19-28.1-11. – Change in information.

§ 19-28.1-11. Change in information. The franchisor must promptly amend its franchise registration application to reflect every material change in the information filed with the director. History of Section.P.L. 1993, ch. 395, § 2.

Section 19-28.1-12. – Advertising.

§ 19-28.1-12. Advertising. No person may publish in this state any advertisement offering to sell a franchise required to be registered under this act unless they maintain the advertising materials for five (5) years, consistent with § 19-28.1-13. History of Section.P.L. 1993, ch. 395, § 2; P.L. 2016, ch. 153, § 2; P.L. 2016, ch. […]

Section 19-28.1-13. – Books and records.

§ 19-28.1-13. Books and records. Every franchisor offering or selling a franchise in this state must maintain a complete and accurate set of books and records of the offers and sales of franchises. The books and records must include disclosure documents, advertising correspondence with franchisees and prospective franchisees, past and present operations manuals, training records, […]

Section 19-28.1-14. – Jurisdiction and venue.

§ 19-28.1-14. Jurisdiction and venue. 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. History of Section.P.L. 1993, ch. 395, § 2; P.L. 2016, ch. 153, […]

Section 19-28.1-15. – Waivers void.

§ 19-28.1-15. Waivers void. 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 clause, or a provision having […]

Section 19-28.1-16. – Franchisee’s right to associate.

§ 19-28.1-16. Franchisee’s right to associate. 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. History of Section.P.L. 1993, ch. 395, § 2.

Section 19-28.1-17. – Fraudulent, deceptive and prohibited practices.

§ 19-28.1-17. Fraudulent, deceptive and prohibited practices. 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 […]

Section 19-28.1-18. – Enforcement.

§ 19-28.1-18. Enforcement. (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) The registration application is […]

Section 19-28.1-19. – Summary action.

§ 19-28.1-19. Summary action. The director upon a finding that it is in the public interest may issue an order summarily under § 19-28.1-18. History of Section.P.L. 1993, ch. 395, § 2.

Section 19-28.1-2. – Legislative intent.

§ 19-28.1-2. Legislative intent. 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 when they are unfamiliar with operating a business, the franchised business and with […]

Section 19-28.1-20. – Criminal prosecution.

§ 19-28.1-20. Criminal prosecution. (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 willfully violates any provision […]

Section 19-28.1-21. – Private civil actions.

§ 19-28.1-21. Private civil actions. (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 […]

Section 19-28.1-22. – Period of limitation.

§ 19-28.1-22. Period of limitation. 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. History of […]

Section 19-28.1-23. – No other civil liability.

§ 19-28.1-23. No other civil liability. 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, 1993. […]

Section 19-28.1-24. – Burden of proof.

§ 19-28.1-24. Burden of proof. 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. History of Section.P.L. 1993, ch. 395, § 2.

Section 19-28.1-25. – Hearings and judicial review.

§ 19-28.1-25. Hearings and judicial review. (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 sufficient if […]

Section 19-28.1-26. – Powers of director.

§ 19-28.1-26. Powers of director. (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 rules under […]

Section 19-28.1-27. – Rules, orders, forms and interpretive opinions.

§ 19-28.1-27. Rules, orders, forms and interpretive opinions. (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 rules for different classes. The […]