In the Casiola agreement, where must any judicial action or legal proceeding be brought?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
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- Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," shall be amended by the addition of the following statement added to Article 18.G. of the Franchise Agreement:
- A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, the franchise agreement dictates where legal proceedings must occur, but this may be superseded based on the state where the franchise is purchased. For example, the Washington Franchise Agreement Amendment states that if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Similarly, the Maryland Franchise Agreement Amendment states that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. The amendment also notes a dispute regarding whether the forum selection requirement is legally enforceable, considering the Federal Arbitration Act and a Maryland franchise regulation.
These stipulations highlight the importance of franchisees understanding the specific legal protections and requirements in their state. Franchisees should consult with legal counsel to fully understand their rights and obligations, particularly concerning dispute resolution and forum selection, as these can vary significantly based on state laws and regulations.