Does the Casiola franchise agreement abrogate any of your rights to any remedies provided for by the laws of the jurisdiction?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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 Minnesota 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 |
NEW YORK FRANCHISE AGREEMENT AMENDMENT
Amendments to the Casiola Franchise Agreement:
In recognition of the requirements of the New York General Business Law, Article 33, Sections 680 through 695, and of the regulations promulgated thereunder (N.Y. Comp. Code R. & Regs., tit. 13, §§ 200.1 through 201.16), the parties to the attached Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement"):
-
- Under Article 14.C. of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the subarticle 14.C.(6) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
-
- Under Article 15.B. of the Franchise Agreement, under the heading "Conditions for Renewal," the subarticle 15.B.(8) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
-
- Article 18 of the Franchise Agreement and, under the heading "Enforcement and Construction," shall be supplemented by the addition of the following new subarticle 18.Z. to the Franchise Agreement:
- Nothing in this Agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
-
- There are circumstances in which an offering made by Casiola Franchise LLC would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed made in New York if you are domiciled in New York or the Outlet will be opening in New York. Casiola Franchise LLC is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
-
- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the New York General Business Law, are met independently without reference to this amendment.
-
- 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.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have duly executed and delivered this New York 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 |
NORTH DAKOTA FRANCHISE AGREEMENT AMENDMENT
Amendments to the Casiola Franchise Agreement:
In recognition of the North Dakota Franchise Investment Law, Section 51-19, the parties to the attached Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Casiola Business will be located within the State of North Dakota.
-
- Article 15 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to sign a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota."
-
- Article 16 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."
-
- Article 6 of the Franchise Agreement are hereby amended by the addition of the following language: "Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota."
-
- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota."
-
- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota franchisees, North Dakota law shall apply."
-
- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
-
- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
-
- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply."
-
- 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.
Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of North Dakota Law are met independently without reference to this amendment.
IN WITNESS WHEREOF, the parties have duly executed and delivered this North Dakota 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 |
WASHINGTON FRANCHISE AGREEMENT AMENDMENT
Amendments to the Casiola Franchise Agreement:
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, or rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
Transfer fees are collectable to the extent that they reflect the franchisor's reasonable estimated or actual costs in effecting a transfer.
Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a franchisee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annually for inflation). In addition, a noncompetition covenant is void and unenforceable against an independent contractor of a franchisee under RCW 49.62.030 unless the independent contractor's earnings from the party seeking enforcement, when annualized, exceed $250,000 per year (an amount that will be adjusted annually for inflation). As a result, any provisions contained in the franchise agreement or elsewhere that conflict with these limitations are void and unenforceable in Washington.
RCW 49.62.060 prohibits a franchisor from restricting, restraining, or prohibiting a franchisee from (i) soliciting or hiring any employee of a franchisee of the same franchisor or (ii) soliciting or hiring any employee of the franchisor. As a result, any such provisions contained in the franchise agreement or elsewhere are void and unenforceable in Washington.
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 amended in several states to ensure franchisees do not waive rights conferred by state franchise laws. For franchisees in New York, the agreement is amended to ensure that rights and causes of action arising from New York General Business Law Sections 680-695 remain in force. Specifically, the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 are to be satisfied.
For Casiola franchisees in Maryland, amendments clarify that the arbitration clause may not be fully enforceable due to potential conflicts with the Maryland Franchise Registration and Disclosure Law. Franchisees in Maryland retain the right to bring a lawsuit in Maryland for claims arising under this law, and any general release required upon renewal, sale, or transfer does not apply to liabilities under the Maryland Franchise Registration and Disclosure Law. Claims under this law must be brought within three years after the franchise grant.
In Illinois, the Casiola franchise agreement is modified to comply with the Illinois Franchise Disclosure Act. Any provision designating jurisdiction or venue outside Illinois is void, although arbitration outside Illinois is permitted. The amendment explicitly states that any condition requiring a franchisee to waive compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Similar protections are in place for franchisees in Hawaii, where the Hawaii Franchise Investment Law takes precedence over any inconsistent provisions in the agreement regarding non-renewal, termination, and transfer.
For franchisees in Minnesota, the agreement is amended to ensure that all rights and causes of action arising from the Minnesota Franchise Act remain in force, satisfying the non-waiver provisions of Minnesota Rules 2860.4400(D). Minnesota law also requires that franchisees receive 180 days' notice of nonrenewal in certain situations. Washington franchisees are protected by the Washington Franchise Investment Protection Act, which prevails in case of conflicting laws. Releases or waivers of rights cannot include rights under this Act unless executed as part of a negotiated settlement with independent counsel.
These amendments collectively ensure that Casiola franchisees' rights under state franchise laws are protected and not inadvertently waived through the franchise agreement. Prospective franchisees should carefully review the specific amendments applicable to their state to understand their rights and protections.