What is the effect of a statement signed by a Casiola franchisee regarding disclaiming reliance on any statement made by any franchisor?

According to Casiola's 2024 Franchise Disclosure Document, certain statements or acknowledgements signed by a franchisee do not waive certain rights. Specifically, in several state-specific amendments to the franchise agreement, it is stated that no statement, questionnaire, or acknowledgement signed by a franchisee in connection with starting the franchise relationship can waive claims under applicable state franchise law, including claims of fraud in the inducement.

This means that even if a Casiola franchisee signs a document that seems to disclaim reliance on statements made by Casiola, its franchise seller, or anyone acting on their behalf, that disclaimer will not be effective. This protection is particularly relevant in cases where a franchisee believes they were misled or provided false information that induced them to invest in the franchise. This provision is included in amendments for California, Illinois, Michigan, Minnesota, Washington and Wisconsin.

This clause protects franchisees by ensuring they retain their legal rights under state franchise laws, regardless of any disclaimers they may have signed. This is a significant protection for franchisees, as it prevents Casiola from using such disclaimers to avoid liability for misrepresentations or other violations of franchise law. The inclusion of this provision in multiple state amendments suggests a proactive effort by those states to protect franchisees' rights and ensure fair franchising practices. This provision supersedes any other term of any document executed in connection with the franchise.