What must a Casiola franchisee do before terminating the agreement due to Franchisor's breach?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
5.G. WITHHOLDING PAYMENTS UNLAWFUL
Franchisee agrees that under no circumstance is Franchisee entitled to withhold payments due to Franchisor under this Agreement. Among other things and without limitation to the foregoing, Franchisee expressly agrees that any claim by Franchisee as to the alleged non-performance of Franchisor's obligations shall not permit and/or entitle Franchisee to withhold payments due Franchisor under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
Based on the 2024 Casiola Franchise Disclosure Document, the agreement states that a franchisee is not entitled to withhold payments due to Casiola under any circumstances. This includes situations where the franchisee claims Casiola is not fulfilling its obligations.
Specifically, the Casiola agreement stipulates that any claim of non-performance by Casiola does not permit the franchisee to withhold payments. This requirement remains in effect regardless of any disputes or alleged breaches of contract by the franchisor.
This clause places a significant financial obligation on the franchisee, requiring them to continue making all payments even if they believe Casiola is in breach of the franchise agreement. Failure to comply with this provision could result in further penalties or legal action by Casiola. Prospective franchisees should carefully consider this aspect of the agreement and seek legal counsel to understand their rights and obligations fully.