What effect does a statement, questionnaire, or acknowledgement signed by a Casiola franchisee have on waiving claims under applicable state franchise law?
Casiola Franchise · 2024 FDDAnswer 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, amendments to the franchise agreement in several states address the enforceability of waivers and acknowledgements signed by franchisees. Specifically, for franchisees in California, Hawaii, Illinois, Maryland, Michigan, Minnesota, North Dakota, New York, Rhode Island, Virginia, Washington and Wisconsin, any statement, questionnaire, or acknowledgement signed by a franchisee in connection with starting the franchise relationship does not waive claims under applicable state franchise law. This includes claims of fraud in the inducement, nor does it disclaim reliance on statements made by Casiola or its representatives. This provision overrides any other conflicting terms in any document executed related to the franchise agreement.
This means that Casiola franchisees in these states retain their rights under state franchise laws, even if they sign documents that appear to waive those rights. For example, if a franchisee signs a statement acknowledging they were not influenced by any promises made by Casiola, they can still bring a claim for fraud in the inducement if they later discover they were misled. This protection is particularly important because franchise agreements often contain clauses that could be interpreted as waivers, and franchisees may not fully understand the implications of these clauses.
It is important to note that these protections are only effective to the extent that the jurisdictional requirements of the relevant state's franchise law are met independently, without relying on the amendment itself. This means that the franchisee must still meet the requirements for the state's franchise law to apply, such as being domiciled in the state or having the outlet located in the state. Prospective Casiola franchisees should consult with an attorney to understand their rights under state franchise law and the specific implications of these amendments in their state.