Does the Minnesota Franchise Agreement Amendment for Casiola prohibit any specific actions by the franchisor or franchisee?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
g as we are timely notified of the claim and given the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim.
- C. Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following: With respect to franchises governed by Minnesota law, we will comply with Minn. Stat. Sec. 80C.14, Subds. 3, 4 and 5, which require, except in certain specified cases, that you be given 90 days- notice of termination (with 60 days to cure) and 180 days-notice of non-renewal of the Agreement.
Casiola. Multi-State FDD April 25, 2024
- D. Item 17 "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following: Item 17 shall not provide for a prospective general release of claims against us that may be subject to the Minnesota Franchise Law. Minn. Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release.
- E. Minn. Stat. §80C.21 and Minn. Rule 2860.4400J prohibit us from requiring litigation to be conducted outside Minnesota. In addition, nothing in the Disclosure Document or Franchise Agreement can abrogate or reduce any of your rights as provided for in Minnesota Statutes, Chapter 80C, or your rights to any procedure, forum or remedies provided for by the laws of the jurisdiction.
- F.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, the Minnesota FDD Amendment addresses certain prohibitions and requirements related to the franchise agreement. Specifically, it ensures that franchisees retain all rights and causes of action arising from the Minnesota Franchise Act, preventing any waiver of these rights.
The amendment explicitly states that Item 17 of the Franchise Agreement, concerning renewal, termination, transfer, and dispute resolution, cannot include a general release of claims against Casiola that might fall under Minnesota Franchise Law. This is because Minnesota Rule 2860.4400D prohibits Casiola from requiring franchisees to agree to a general release.
Furthermore, Casiola is prohibited from requiring litigation to occur outside of Minnesota, as per Minn. Stat. §80C.21 and Minn. Rule 2860.4400J. The amendment also clarifies that no statement, questionnaire, or acknowledgment signed by a franchisee can waive claims under 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. Additionally, Minnesota Statute 604.113 puts a cap of $30 on service charges for non-sufficient funds.