Besides federal law, what state's laws govern the Casiola franchise agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have duly executed and delivered this Hawaii State amendment to Casiola Franchise LLC Franchise Agreement on the same date as the Franchise Agreement was executed.
| Franchisor: Casiola Franchise LLC | Franchisee: | |
|---|---|---|
| By: | Signature | |
| Signature | ||
| Name and Title (please print) | Name (please print) | |
| Dated | Dated |
ILLINOIS FRANCHISE AGREEMENT AMENDMENT
Amendments to the Casiola Franchise Agreement:
In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS 705/1 to 705/45, and Ill. Admin. Code tit. 15, §200.100 et seq., the undersigned agree to the following modifications to Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign Casiola Franchise LLC, as follows:
- Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.F. of the Franchise Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.
Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Section 41 of the Illinois Franchise Disclosure Act Provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act, or any other law of Illinois is void.
- 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 after the end of the last sentence of Article 18.G. of the Franchise Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void. However, a Franchise Agreement may provide for arbitration in a venue outside Illinois.
Your rights upon termination and non-renewal of a Franchise Agreement are set forth in Sections 19 and 20 of the Illinois Franchise Disclosure Act.
Section 41 of the Illinois Franchise Disclosure Act Provides that any condition, stipulation or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act, or any other law of Illinois is void.
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- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Illinois Franchise Disclosure Act (815 ILCS 705/1 to 705/45) are met independently without reference to this amendment.
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- No statement, questionnaire or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of: (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any
statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
IN WITNESS WHEREOF, the parties have duly executed and delivered this Illinois amendment to Casiola Franchise LLC Franchise Agreement on the same date as the Franchise Agreement was executed.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, the franchise agreement is governed by specific state laws depending on the franchisee's location. For franchisees in Illinois, the agreement is governed by Illinois law, as stated in the Illinois Franchise Agreement Amendment. Similarly, for franchisees in North Dakota, North Dakota law applies, according to the North Dakota Franchise Agreement Amendment. For franchisees in Maryland, the Maryland Franchise Registration and Disclosure Law applies, and franchisees may bring lawsuits in Maryland for claims arising under this law. In Washington, the Washington Franchise Investment Protection Act prevails in the event of a conflict of laws. Finally, New York General Business Law applies to franchisees domiciled in New York or if the outlet will be opening in New York.
These state-specific amendments ensure that Casiola franchisees receive the protections and rights afforded to them under their respective state's franchise laws. For example, certain provisions in the standard franchise agreement that might conflict with state laws, such as those related to general releases, termination, non-renewal, covenants not to compete, and waivers of rights, are superseded by the state's franchise laws. This is particularly important in states like North Dakota, where certain covenants and waivers are explicitly unenforceable.
Prospective Casiola franchisees should carefully review the amendment specific to their state of residence or the state in which their franchise will operate. Understanding these state-specific provisions is crucial for ensuring compliance and protecting their rights as franchisees. It is also advisable to consult with legal counsel to fully understand the implications of these state laws on their franchise agreement.