Rhode Island is a franchise registration state. This imposes a significant legal requirement on franchisors, who must formally register their Franchise Disclosure Document (FDD) with the state’s Department of Business Regulation, Securities Division, before they can legally offer or sell any franchise units within its borders.
With that in mind, the initial registration fee is $600, and this registration must be renewed annually with a $300 fee.
The state’s franchise law, known as the Rhode Island Franchise Investment Act, mandates this registration process.
The application requires the submission of the FDD, a Uniform Consent to Service of Process, and other disclosure forms.
However, there are specific exemptions to this registration requirement. For instance, highly capitalized franchisors with a net worth of at least $10 million and a minimum of 25 operating franchisees for the last five years may be exempt from registration, though they still need to file for an exemption and pay a fee.
For the ongoing relationship between the parties, Rhode Island provides statutory protections for franchisees that supersede the terms of the franchise agreement. The state has a Fair Dealership Act which is applicable to franchises and requires what’s known as “good cause” for a franchisor to terminate or refuse to renew a franchise agreement.
In addition, the law also specifies notice requirements, mandating that a franchisor provide 60 days’ written notice for termination or non-renewal, which must include a 30-day period for the franchisee to cure the stated default. This legal framework provides a level of security for franchisees beyond what is found in states without such relationship laws.
Here is a list of franchise lawyers you can hire in Rhode Island
Nicole Liguori Micklich / Urso, Liguori & Micklich, P.C.
90 Airport Road
Westerly, Rhode Island
Douglas H. Smith
140 Reservoir Avenue
Providence, Rhode Island
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Joel Libava, President.
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