Does the Casiola Franchise Agreement allow for a waiver of any right conferred upon the Franchisee by the Minnesota Franchise Act?
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 Maryland amendment to the 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 |
MINNESOTA FRANCHISE AGREEMENT AMENDMENT
Amendments to the Casiola Franchise Agreement:
In recognition of the requirements of the Minnesota Statutes, Chapter 80C. and Minnesota Franchise Rules, Chapter 2860, the parties to the attached Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement"), as follows:
- Article 14.C. of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," subarticle 14.C.(6) is supplemented with the addition of the following language:
; provided, however, that all rights enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and
Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.
- 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 enjoyed by Franchisee and any causes of action arising in Franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force; it being the intent of this provision that the non-waiver provisions of the Minnesota Rules 2860.4400(D) be satisfied; and
Minnesota law provides a franchisee with certain termination and non-renewal rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 180 days-notice of nonrenewal of this Agreement by Franchisor.
- Under Article 11 of the Franchise Agreement, under the heading "Notification of Infringement and Claims," the subarticle 11.C.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Minnesota Franchise Agreement Amendment explicitly states that the franchisee retains all rights and causes of action arising from the Minnesota Franchise Act. This amendment ensures that the non-waiver provisions of Minnesota Rules 2860.4400(D) are satisfied, meaning Casiola cannot enforce terms that waive the franchisee's rights under Minnesota law. Specifically, this applies to Article 14.C.(6) regarding "Conditions for Approval of Transfer" and Article 15.B.(8) regarding "Conditions for Renewal" within the franchise agreement.
Furthermore, the FDD states that Item 17 of the Franchise Agreement, concerning "Renewal, Termination, Transfer and Dispute Resolution," cannot include a general release of claims against Casiola that would be subject to the Minnesota Franchise Law. This is because Minnesota Rule 2860.4400D prohibits Casiola from requiring a franchisee to agree to a general release. Additionally, Casiola is prohibited from mandating that litigation be conducted outside of Minnesota, as per Minn. Stat. §80C.21 and Minn. Rule 2860.4400J.
In practical terms, these provisions mean that a Casiola franchisee in Minnesota retains their rights under the Minnesota Franchise Act, even within the standard Franchise Agreement. Casiola is also obligated to provide specific notices regarding termination and non-renewal, as required by Minnesota law. These stipulations protect the franchisee by preventing unintentional or forced waivers of their legal rights and ensuring fair treatment under Minnesota law.