In Rhode Island, under what circumstances is a general release required for renewal, termination, or transfer of a Casiola franchise considered void?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- Item 17, "Renewal, Termination, Transfer and Dispute Resolution," Item 17 is supplemented by the addition of the following:
- A. The Rhode Island Franchise Investment Act, R.I. Gen. Law Ch. 395 Sec. 19-28.1-14 provides that a provision in a Franchise Agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under the Rhode Island Franchise Investment Act.
- B. Any general release as a condition of renewal, termination or transfer will be void with respect to claims under the Rhode Island Franchise Investment Act.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, in Rhode Island, any general release required as a condition of renewal, termination, or transfer of a Casiola franchise will be considered void with respect to claims arising under the Rhode Island Franchise Investment Act. This means that while Casiola may require a general release for these actions, that release cannot prevent a franchisee from pursuing claims related to violations of the Rhode Island Franchise Investment Act.
This provision protects Casiola franchisees in Rhode Island by ensuring they do not waive their rights under the state's franchise law when renewing, terminating, or transferring their franchise. The Rhode Island Franchise Investment Act provides certain protections to franchisees, and this clause ensures those protections remain in place regardless of any general release agreement.
Prospective franchisees in Rhode Island should understand that this clause is designed to safeguard their ability to bring claims under the Rhode Island Franchise Investment Act, even if they sign a general release. This does not prevent Casiola from requiring a general release for other types of claims, but it specifically excludes claims related to the Rhode Island Franchise Investment Act.