In New York, is a Casiola franchisee required to assent to a general release?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
7.4 and 687.5 be satisfied.
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- Under Article 15.B. of the Franchise Agreement, under the heading "Conditions for Renewal," the subarticle 15.B.(8) is supplemented with the addition of the following language:
- ; provided, however, that all rights and causes of action arising in favor of Franchisee from the provisions of New York General Business Law Sections 680-695 and the regulations issued thereunder, shall remain in force; it being the intent of this provision that the non-waiver provisions of N.Y. Gen. Bus. Law Sections 687.4 and 687.5 be satisfied.
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- Article 18 of the Franchise Agreement and, under the heading "Enforcement and Construction," shall be supplemented by the addition of the following new subarticle 18.Z. to the Franchise Agreement:
- Nothing in this Agreement should be considered a waiver of any right conferred upon franchisee by New York General Business Law, Sections 680-695.
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- There are circumstances in which an offering made by Casiola Franchise LLC would not fall within the scope of the New York General Business Law, Article 33, such as when the offer and acceptance occurred outside the State of New York. However, an offer or sale is deemed made in New York if you are domiciled in New York or the Outlet will be opening in New York. Casiola Franchise LLC is required to furnish a New York prospectus to every prospective franchisee who is protected under the New York General Business Law, Article 33.
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- Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of the New York General Business Law, are met independently without reference to this amendment.
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Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, several provisions address the rights of franchisees in New York, particularly concerning waivers and releases. The New York Franchise Agreement Amendment explicitly states that nothing in the agreement should be considered a waiver of any right conferred upon the franchisee by New York General Business Law, Sections 680-695. This amendment is designed to ensure that franchisees retain all rights granted to them under New York law.
Specifically, the FDD highlights that no statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise can waive claims under any applicable state franchise law, including claims of fraud in the inducement, or disclaim reliance on statements made by Casiola or its representatives. This provision supersedes any other conflicting terms in any document related to the franchise agreement, reinforcing the protection of franchisee rights under New York law.
Furthermore, the amendment includes provisions related to the transfer and renewal of the franchise agreement, ensuring that the franchisee's rights and causes of action arising from the New York General Business Law remain in force during these processes. This indicates that Casiola is taking measures to comply with New York law, which aims to protect franchisees from inadvertently waiving their rights. Therefore, while a general release might be part of the standard franchise agreement, the New York amendment ensures that it does not waive any rights provided under New York General Business Law Sections 680-695.