factual

What is the effect of the provision superseding any other term of any document executed in connection with the Casiola franchise on disclaiming reliance on any statement made by any franchisor?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

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.

Source: Item 23 — RECEIPTS (FDD pages 47–209)

What This Means (2024 FDD)

According to the 2024 Casiola Franchise Disclosure Document, a specific provision addresses the effect of superseding terms related to reliance on franchisor statements. For franchisees in certain states like Illinois, Hawaii, Minnesota, and New York, any statement, questionnaire, or acknowledgement signed by the franchisee at the start of the franchise relationship cannot waive claims under state franchise law, including fraud in the inducement.

Specifically, these documents cannot disclaim reliance on statements made by Casiola, its franchise sellers, or anyone acting on Casiola's behalf. This protection is reinforced by a clause stating that this provision overrides any other conflicting term in any document associated with the franchise agreement. This means that even if other documents contain language that seems to limit Casiola's liability for statements made, this specific provision ensures that franchisees in those states retain their right to claim reliance on those statements.

This clause offers a degree of protection to franchisees by preventing Casiola from using standard contract language to avoid responsibility for potentially misleading statements made during the franchise sales process. It ensures that franchisees in the specified states can hold Casiola accountable for representations made that influenced their decision to invest in the franchise. Prospective franchisees should consult with legal counsel to fully understand the implications of this provision and how it interacts with other aspects of the franchise agreement and applicable state laws.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.