Can a Casiola franchisee bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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:
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- 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.
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. This is explicitly stated as an amendment to Article 18.G. of the Franchise Agreement, which covers choice of law, non-binding mediation, binding arbitration, and consent to jurisdiction. This amendment ensures that franchisees are not waiving their right to file a lawsuit in Maryland for violations of Maryland Franchise 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. This is outlined as an amendment to Article 18.I. of the Franchise Agreement, which addresses limitations of claims. Additionally, any general release required as a condition of renewal, sale, or assignment/transfer of a Franchise Agreement will not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
These amendments are crucial for prospective Casiola franchisees in Maryland as they clarify and protect their rights under Maryland franchise law. They ensure that the standard franchise agreement does not inadvertently force them to waive their legal rights or limit their ability to seek legal recourse within the state. The three-year limitation on claims provides a specific timeframe within which franchisees must act, which is important for managing potential legal issues.