factual

Does the Casiola franchise agreement reduce any of your rights to any procedure provided for by the laws of the jurisdiction?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

ming 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.

IN WITNESS WHEREOF, the parties have duly executed and delivered this Illinois 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

MARYLAND FRANCHISE AGREEMENT AMENDMENT

Amendments to the Casiola Franchise Agreement:

In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the parties to the attached Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement"), as follows:

    1. The franchise agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
    1. The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
    1. Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," shall be amended by the addition of the following statement added to Article 18.G. of the Franchise Agreement:
    • A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
    1. Article 18.I. of the Franchise Agreement, under the heading "Limitations of Claims," shall be amended by the addition of the following statement added to Article 18.I. of the Franchise Agreement:

Any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise.

A general release required as a condition of renewal, sale and/or assignment or transfer of a Franchise Agreement shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.

    1. All representations requiring prospective franchisees to assent to a release, estoppel or waiver of liability are not intended to nor shall they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law.
    1. Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the Maryland Franchise Registration and Disclosure Law are met independently without reference to this amendment.
    1. 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 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:

  1. 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.

  1. 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.

  1. Under Article 11 of the Franchise Agreement, under the heading "Notification of Infringement and Claims," the subarticle 11.C. shall be supplemented by the addition of the following:

Franchisor agrees to protect Franchisee, to the extent required by the Minnesota Franchise Act, against claims of infringement or unfair competition with respect to Franchisee's use of the Marks when, in the opinion of Franchisor's counsel, Franchisee's rights warrant protection pursuant to Article 11.E. of this Agreement.

  1. Under Article 14 of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the subarticle 14.C. shall be supplemented by the addition of the following:

Franchisor shall not unreasonably withhold consent to transfer the Franchise Agreement.

  1. Under Article 16 of the Franchise Agreement, under the heading "Defaults and Automatic Termination Upon Written Notice Without Cure Period," the subarticle 16.A.(2) shall be supplemented by the addition of the following:

Article 16.A.(2) will not be enforced to the extent prohibited by applicable law.

    1. Under Article 16 of the Franchise Agreement, under the heading "Defaults and Automatic Termination After 30 Day Cure Period," the subarticle 16.A.(4)(f), shall be supplemented by the addition of the following:
    • Subarticle 16.A.(4)(f) will not be enforced to the extent prohibited by applicable law.
    1. Under both subarticles 16.A.(2) and 16.A.(4) of the Franchise Agreement, the following is added:
    • Minnesota law provides a franchisee with certain termination rights. Minn. Stat. Sect. 80C.14 Subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 90 daysnotice of termination (with 60 days to cure) of this Agreement.
    1. Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.F.:
    • ; except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
    1. Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction", shall be amended by the addition of the following statement added to the end of the last sentence of Article 18.G. of the Franchise Agreement:
    • ; except to the extent otherwise prohibited by applicable law with respect to claims arising under the Minnesota Franchise Act.
    1. Article 18.K. of the Franchise Agreement, under the heading "Waiver of Jury Trial", shall be supplemented by the addition of the following statement at the end of the sentence contained in Article 18.K. of the Franchise Agreement:
    • ; except that nothing in this Agreement should be considered a waiver of any right conferred upon Franchisee by the Minnesota Franchise Act.
    1. Article 18.I. of the Franchise Agreement, under the heading "Limitations of Claims," shall be supplemented by the addition of the following statement:
    • Under the Minnesota Franchise Act, any claims between the parties must be commenced within three years of the occurrence of the facts giving rise to such claim, or such claim shall be barred.

Source: Item 23 — RECEIPTS (FDD pages 47–209)

What This Means (2024 FDD)

According to the 2024 Casiola Franchise Disclosure Document, several state-specific amendments address potential waivers or limitations of franchisee rights under local laws. For franchisees in Maryland, the agreement is amended to ensure the franchisee can bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, and that any general release required for renewal, sale, or transfer does not apply to liabilities under this law. Furthermore, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. These amendments address concerns about arbitration, general releases, and limitations on claims, ensuring franchisees retain their rights under Maryland law.

For New York, the Casiola franchise agreement is amended to ensure that franchisees do not waive rights or causes of action arising from the New York General Business Law Sections 680-695. This includes provisions related to transfer and renewal conditions, reinforcing the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5. The agreement also explicitly states that nothing within it should be considered a waiver of any right conferred upon the franchisee by these New York General Business Law sections. These amendments are crucial because they protect the franchisee's rights under New York law, especially concerning transfers, renewals, and general compliance with franchise regulations.

In Illinois, the Casiola franchise agreement is modified to comply with the Illinois Franchise Disclosure Act. The agreement specifies that Illinois law governs the agreements between the parties and that any provision designating jurisdiction or venue outside Illinois is void, although arbitration outside Illinois is permitted. The amendment also emphasizes that any condition requiring a waiver of compliance with the Illinois Franchise Disclosure Act or any other Illinois law is void. Similarly, for Hawaii, the agreement ensures that all rights enjoyed by the franchisee and any causes of action arising in the franchisee's favor from the provisions of the Hawaii Franchise Investment Law remain in force. If any provision is inconsistent with the Hawaii Franchise Investment Law, that law will take precedence. Finally, in Washington, the franchise agreement is subject to the Washington Franchise Investment Protection Act, which may supersede the agreement in areas such as termination and renewal, ensuring franchisees' rights are protected under Washington law.

These state-specific amendments to the Casiola franchise agreement collectively ensure that franchisees' rights under various state franchise laws are not diminished or waived. By explicitly addressing non-waiver provisions and potential conflicts with state laws, Casiola aims to comply with franchise regulations and provide franchisees with legal protections specific to their jurisdiction. Prospective franchisees should carefully review the amendment specific to their state to understand the full scope of their rights and protections.

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.