Can a Casiola franchisee in Washington disclaim reliance on statements made by the franchisor or its representatives through a signed statement or acknowledgement?
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) waiting 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.
Washington FDD Amendment
Amendments to the Casiola Franchise Disclosure Document
In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW will prevail.
RCW 19.100.180 may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise. There may also be court decisions which may supersede the franchise agreement in your relationship with the franchisor including the areas of termination and renewal of your franchise.
In any arbitration or mediation involving a franchise purchased in Washington, the arbitration or mediation site will be either in the state of Washington, or in a place mutually agreed upon at the time of the arbitration or mediation, or as determined by the arbitrator or mediator at the time of arbitration or mediation. In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, a Washington franchisee cannot disclaim reliance on statements made by Casiola or its representatives through a signed statement or acknowledgement. The Washington FDD Amendment explicitly states that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement.
This means that any attempt by Casiola to have a Washington franchisee sign away their right to claim they relied on the franchisor's statements is void and unenforceable. This protection is in place to ensure franchisees are not misled or coerced into relinquishing their legal rights at the start of the franchise relationship. The Washington Franchise Investment Protection Act and potential court decisions may also supersede the franchise agreement in areas like termination and renewal, further safeguarding the franchisee's interests.
Furthermore, in any arbitration or mediation involving a Casiola franchise purchased in Washington, the venue must be in Washington or a mutually agreed-upon location. Franchisees also have the right to bring legal action in Washington for issues related to the sale of franchises or violations of the Washington Franchise Investment Protection Act, if litigation is not precluded by the franchise agreement. These stipulations provide additional legal recourse and protection for Casiola franchisees operating in Washington.