Franchisors offering and selling franchises in Rhode Island should take note of recent amendments to Rhode Island's Franchise Investment Act:
Disclosure Requirements
Franchisors must now provide prospects with an FDD at least 14 calendar days before the execution of an agreement or the payment of any consideration related to the franchise. "Calendar days" include all days of the week, including weekends. The amendments delete Rhode Island's prior requirement that franchisors provide an FDD in advance of the first meeting to discuss a franchise sale.
Advertising Requirements
Franchisors must now retain any advertising that offers to sell a franchise for 5 years (if the franchise is required to register under Rhode Island law). The amendments delete Rhode Island's prior requirement to file advertising with the state at least 5 days prior to its first publication.
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