Does the general release required for renewal, sale, or transfer of a Casiola franchise apply to liabilities under the Maryland Franchise Registration and Disclosure Law?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ming 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.
IN WITNESS WHEREOF, the parties have duly executed and delivered this Illinois amendment to Casiola Franchise LLC Franchise Agreement on the same date as the Franchise Agreement was executed.
| Franchisor: Casiola Franchise LLC | Franchisee: | |
|---|---|---|
| By: | Signature | |
| Signature | ||
| Name and Title (please print) | Name (please print) | |
| Dated | Dated |
MARYLAND FRANCHISE AGREEMENT AMENDMENT
Amendments to the Casiola Franchise Agreement:
In recognition of the requirements of the Maryland Franchise Registration and Disclosure Law, the parties to the attached Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement"), as follows:
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- The franchise agreement provides that disputes are resolved through arbitration. A Maryland franchise regulation states that it is an unfair or deceptive practice to require a franchisee to waive its right to file a lawsuit in Maryland claiming a violation of the Maryland Franchise Law. In light of the Federal Arbitration Act, there is some dispute as to whether this forum selection requirement is legally enforceable.
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- 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.
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- Article 18.G. of the Franchise Agreement, under the heading "Choice of Law, Non-Binding Mediation, Binding Arbitration, and Consent to Jurisdiction," shall be amended by the addition of the following statement added to Article 18.G. of the Franchise Agreement:
- A franchisee may bring a lawsuit in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
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- Article 18.I. of the Franchise Agreement, under the heading "Limitations of Claims," shall be amended by the addition of the following statement added to Article 18.I.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, the general release required as a condition of renewal, sale, or transfer of a Casiola franchise does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. This means that even if a franchisee signs a general release, they still retain the right to pursue claims under Maryland's franchise law.
This protection is specifically outlined in the Maryland FDD Amendment, which supplements the standard franchise agreement. The amendment ensures that franchisees do not waive their rights under Maryland law when signing a general release. Additionally, franchisees are permitted to bring lawsuits in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law.
Furthermore, any claims arising under the Maryland Franchise Registration and Disclosure Law must be brought within three years after the grant of the franchise. This provision sets a time limit for franchisees to pursue such claims, ensuring timely resolution of disputes. Casiola's amendment also clarifies that no statement, questionnaire, or acknowledgement signed by a franchisee can waive claims under any applicable state franchise law, including fraud in the inducement, or disclaim reliance on statements made by the franchisor.