What amendment is added to Article 18.G of the Casiola Franchise Agreement regarding lawsuits in Maryland?

According to Casiola's 2024 Franchise Disclosure Document, Article 18.G of the Franchise Agreement, which addresses "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," is amended for Maryland franchisees. The amendment allows a franchisee to bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This modification acknowledges the requirements of the Maryland Franchise Registration and Disclosure Law.

This amendment is significant because the standard Casiola franchise agreement requires disputes to be resolved through arbitration. However, Maryland franchise regulations state that it is an unfair or deceptive practice to require a franchisee to waive their right to file a lawsuit in Maryland claiming a violation of Maryland Franchise Law. The amendment ensures compliance with Maryland law and protects the franchisee's right to seek legal recourse in Maryland courts for specific franchise-related claims.

Prospective Casiola franchisees in Maryland should understand that while the standard agreement includes arbitration, this amendment provides an exception, allowing them to pursue lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This offers an additional layer of protection and legal recourse for franchisees operating in Maryland, ensuring their rights under state law are preserved.