Rhode Island FDD Registration: Reasons for Registration Denial or Revocation
In the state of Rhode Island a franchisor's FDD registration may be denied or, later, revoked pursuant to the Rhode Island Franchise Investment Act based upon any one of the following grounds:
The franchisor failed to comply with a provision of this act [Franchise Investment Act] or a rule, order or condition of the director under this act;
The registration application is incomplete or inaccurate in any material respect;
The registration application includes a false or misleading statement of a material fact or omits to state a material fact required to be stated or necessary to make a required statement not misleading;
The sale of the franchise would constitute a misrepresentation, deceit or fraud upon an offeree;
A person is engaging in, has engaged in or is about to engage in a false, fraudulent or deceptive practice or a device, scheme, or artifice to defraud in connection with the offer or sale of the franchise;
A partner, officer or director of the franchisor or a person who occupies a similar status or performs similar functions or a person who directly or indirectly controls or is controlled by the franchisor is or has been found guilty or liable in a proceeding required to be described in the registration application and the involvement of the person creates an unreasonable risk to franchisees or offerees;
An advertisement prohibited by the act has been used in connection with the offer or sale of a franchise;
The franchisor's enterprise or method of business includes activities that are illegal where performed; or
The financial condition of the franchisor impairs or would impair the ability of the franchisor to fulfill obligations under the franchise agreement;
Franchisors should review this list carefully and coordinate a thorough checklist review before submitting their registration applications. In far too many instances delays are caused by relatively minor but completely "avoidable" mistakes.
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and Charles N. Internicola, Esq. and that the information contained on this site does not and cannot serve as a replacement for the competent legal advice of a licensed attorney in your state. Further you acknowledge that any and all citations to cases and statutes must be independently verified by competent legal counsel to confirm the validity and accuracy of such information. The content of this site is subject to the Copyright of its author and owner, Charles N. Internicola, Esq.
