Can a franchisee disclaim reliance on any statement made by the franchisor by signing a statement in connection with the commencement of the Casiola franchise relationship?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, several state-specific amendments address the enforceability of statements or acknowledgments signed by a franchisee at the start of the franchise relationship. Specifically, amendments for California, Hawaii, Illinois, Minnesota, New York, Washington and Wisconsin state that no such statement, questionnaire, or acknowledgment can waive claims under applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Casiola, its sellers, or representatives. These provisions override any conflicting terms in other franchise documents.
This means that for franchisees operating in or protected by the laws of California, Hawaii, Illinois, Minnesota, New York, Washington and Wisconsin, they retain their rights to pursue claims against Casiola, even if they have signed documents that appear to disclaim reliance on Casiola's statements. This protection extends to claims of fraud, ensuring franchisees are not bound by waivers that could prevent them from seeking legal recourse.
For a prospective Casiola franchisee, this is a beneficial provision as it safeguards their legal rights and ensures they can hold Casiola accountable for any misrepresentations made during the franchise sales process. However, it's important to note that these protections are specific to the states mentioned and may not apply in other jurisdictions. Franchisees should consult with legal counsel to understand their rights and protections under the laws of their specific state.