Rhode Island franchise termination law

The Rhode Island Fair Dealership Act requires 60 days' written notice with a 30 day cure, three cures per year, and shorter periods for set grounds.

Rhode Island's Fair Dealership Act (R.I. Gen. Laws chapter 6-50) is one of the few statutes that states both a notice period and cure periods. It speaks of "dealers" and "grantors" and not franchisees and franchisors.

Source note: Rhode Island's legislature host was unreachable on 28 October 2026. The text was read from Internet Archive snapshots taken in 2023 of the official statute pages. The sections may have been amended since, so check the live official text.

Coverage and exclusions

A "dealership" is a contract, express or implied, written or oral, granting a right to sell or distribute goods or services, or to use a trade name, trademark, service mark, logotype, advertising or other commercial symbol, where there is a "community of interest" in the business. The Act defines community of interest as "a continuing financial interest between the grantor and the grantee." A dealer is a grantee of a dealership "situated in this state." Section 6-50-9 says the chapter does not apply to malt beverage, motor vehicle, insurance agency, fuel distribution or door-to-door dealerships. This page gives no verdict on whether a given agreement is covered.

The notice and cure periods in 6-50-4

R.I. Gen. Laws 6-50-4, as read from the 2023 archive copy

Situation	Notice	Cure
Termination, cancellation or non-renewal, general rule	60 days' written notice stating all the reasons	30 days to cure any claimed deficiency; the dealer may cure three times in any 12 month period
Nonpayment of sums due	Written notice of the default	10 days from the date of the notice
Violation of a law, regulation or standard on public health or safety	Immediate written notice	24 hours
Six listed grounds (see below)	Effective immediately on written notice	None stated

The six immediate grounds in 6-50-4(a) are that the dealer: voluntarily abandons the dealership; is convicted of a felony related to the business; engages in a substantial act that tends to materially impair the goodwill of the grantor's trade name or mark; makes a material misrepresentation of fact to the grantor relating to the dealership; attempts to transfer the dealership without the grantor's authorization; or is insolvent or files or suffers a bankruptcy petition.

Good cause: one thing the page has not confirmed

Section 6-50-2 defines good cause for terminating, canceling or non-renewal as including failure by the dealer to comply with the grantor's reasonable requirements, or any of the reasons listed in 6-50-4(a)(1) to (6). In the sections read, there is no sentence that says in so many words that a grantor may not terminate without good cause; the concept appears in the definition and in 6-50-6. That point should be checked against the live text and case law.

Remedies, arbitration and contract terms

Section 6-50-7: a dealer may sue in any court of competent jurisdiction for damages, together with the actual costs of the action including reasonable, actual attorneys' fees, and may be granted injunctive relief against unlawful termination, cancellation or nonrenewal.
Section 6-50-8: a violation by the grantor is deemed "an irreparable injury to the dealer in determining if temporary injunctions should issue."
Section 6-50-3(c): "The effect of this chapter may not be varied by contract or agreement." A contract term that tries is void to that extent only.
Section 6-50-6: the chapter does not apply to binding arbitration provisions if the criteria for deciding good cause, and the relief provided, are no less than the chapter provides.

Questions to look for in your own notice and agreement

Does the notice give 60 days and state all the reasons, and does it say the dealer has 30 days to cure?
Is the stated reason nonpayment, a public health or safety violation, or one of the six immediate grounds?
How many cures have already been used in the last 12 months?
Does the agreement send disputes to arbitration, and do its good cause criteria and relief match the Act?

Your notice and agreement control your own dates; a lawyer licensed in Rhode Island can advise. Related: the cure period explained, incurable defaults and arbitration clauses.