Does the Casiola franchisee irrevocably consent to the jurisdiction and venue specified in the agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
NOIS FRANCHISE AGREEMENT AMENDMENT**
Amendments to the Casiola Franchise Agreement:
In recognition of the requirements of the Illinois Franchise Disclosure Act, 815 ILCS 705/1 to 705/45, and Ill. Admin. Code tit. 15, §200.100 et seq., the undersigned agree to the following modifications to Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement") and, if Franchisor and Franchisee both sign Casiola Franchise LLC, as follows:
- Article 18.F. of the Franchise Agreement, under the heading "Governing Law", shall be amended by the addition of the following statement added after the end of the last sentence of Article 18.F. of the Franchise Agreement:
Illinois Addendum: Illinois law governs the agreements between the parties to this franchise.
Section 4 of the Illinois Franchise Disclosure Act Provides that any provision in a Franchise Agreement that designates jurisdiction or venue outside the State of Illinois is void.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, the franchisee's consent to jurisdiction and venue depends on the state in which they are located. For instance, the Illinois Franchise Agreement Amendment states that any provision designating jurisdiction or venue outside of Illinois is void, although arbitration outside the state is permitted. Similarly, the North Dakota Franchise Agreement Amendment indicates that provisions requiring franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable.
In Maryland, the Franchise Agreement Amendment specifies that a franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law, despite the agreement's arbitration clause. This suggests that while the Casiola franchise agreement may initially specify a particular jurisdiction, these amendments ensure franchisees retain certain rights to pursue legal action within their own state under specific circumstances.
For prospective Casiola franchisees, these stipulations mean that the enforceability of jurisdiction and venue clauses can vary. Franchisees should be aware of the specific franchise laws in their state and how they may modify the standard terms of the Casiola Franchise Agreement. It is advisable to consult with a legal professional to understand the full extent of their rights and obligations regarding dispute resolution and legal proceedings.