Does the Casiola General Release include claims related to federal and state franchise laws?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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.
Nothing in this Agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
Indiana Code 23-2-2.7-1(5) prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law.
California Corporations Code Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516).
Business and Professions Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the general release required as a condition of renewal, sale, and/or assignment/transfer of the franchise agreement does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that franchisees in Maryland retain their rights to pursue claims under Maryland franchise law, even if they sign a general release.
Similarly, in New York, no statement, questionnaire, or acknowledgement signed by a franchisee at the start of the franchise relationship can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Casiola or its representatives. This provision overrides any conflicting terms in other documents related to the franchise agreement. The FDD also states that nothing in the agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
For franchisees in Indiana, Indiana Code prohibits a prospective general release of claims subject to the Indiana Deceptive Franchise Practices Law. This ensures that franchisees in Indiana cannot be forced to waive their rights under Indiana's franchise laws through a general release. In California, the Franchise Investment Law voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516) and the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).
These stipulations protect franchisees by preventing Casiola from using general releases to circumvent state franchise laws and ensuring that franchisees retain their legal rights and remedies under those laws. However, prospective franchisees should carefully review the specific terms of the franchise agreement and any related releases with legal counsel to fully understand their rights and obligations in their specific state.