What is the amendment 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 explicitly states that a franchisee can file a lawsuit in Maryland if the claims arise under the Maryland Franchise Registration and Disclosure Law.

This amendment is significant because the standard franchise agreement typically mandates arbitration for dispute resolution. However, Maryland law stipulates that it is an unfair or deceptive practice to require a franchisee to waive their right to sue in Maryland for violations of Maryland franchise law. The amendment ensures compliance with Maryland law and protects the franchisee's right to seek legal recourse within the state for specific franchise-related claims.

This modification provides clarity and protection for Casiola franchisees in Maryland, ensuring their rights under the Maryland Franchise Registration and Disclosure Law are preserved. It addresses potential conflicts between the standard franchise agreement's arbitration clause and Maryland's franchise regulations. Prospective franchisees in Maryland should understand that this amendment allows them to pursue legal action in Maryland courts for claims related to the Maryland Franchise Registration and Disclosure Law, despite any arbitration provisions in the standard agreement.