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 franchise seller?

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 acknowledgements or statements made during the commencement of the franchise relationship. This provision ensures that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under applicable state franchise laws, including claims related to fraud in the inducement.

Specifically, the provision prevents franchisees from disclaiming reliance on statements made by Casiola, its franchise sellers, or anyone acting on Casiola's behalf. This means that even if a franchisee signs a document suggesting they did not rely on certain statements, that document will not prevent them from later claiming they did rely on those statements, especially in cases of fraud.

To reinforce this protection for franchisees, the FDD states that this particular provision supersedes any other conflicting term in any document associated with the franchise agreement. This ensures that the franchisee's right to claim reliance on statements made by Casiola or its representatives is upheld, regardless of what other documents might say. This protection is particularly relevant in states with franchise-specific laws, such as Illinois, New York, Minnesota, Hawaii, Maryland, Virginia and Washington, where these provisions are included as amendments to the franchise agreement.

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.