Under what condition is a waiver by Casiola of any term and condition of the franchise agreement considered valid?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have duly executed and delivered this Minnesota State 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 |
NEW YORK FRANCHISE AGREEMENT AMENDMENT
Amendments to the Casiola Franchise Agreement:
In recognition of the requirements of the New York General Business Law, Article 33, Sections 680 through 695, and of the regulations promulgated thereunder (N.Y. Comp. Code R. & Regs., tit. 13, §§ 200.1 through 201.16), the parties to the attached Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement"):
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- Under Article 14.C. of the Franchise Agreement, under the heading "Conditions for Approval of Transfer," the subarticle 14.C.(6) 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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- 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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- 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. This provision supersedes any other term of any document executed in connection with the franchise.
[SIGNATURE PAGE TO FOLLOW]
IN WITNESS WHEREOF, the parties have duly executed and delivered this New York 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 |
NORTH DAKOTA FRANCHISE AGREEMENT AMENDMENT
Amendments to the Casiola Franchise Agreement:
In recognition of the North Dakota Franchise Investment Law, Section 51-19, the parties to the attached Casiola Franchise LLC Franchise Agreement (the "Franchise Agreement") agree as follows:
The North Dakota Addendum is only applicable if you are a resident of North Dakota or if your Casiola Business will be located within the State of North Dakota.
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- Article 15 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to sign a general release upon renewal of the Franchise Agreement are not enforceable in North Dakota."
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- Article 16 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring North Dakota franchisees to consent to termination or liquidated damages are not enforceable in North Dakota."
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- Article 6 of the Franchise Agreement are hereby amended by the addition of the following language: "Covenants not to compete such as those mentioned above are generally considered unenforceable in the State of North Dakota."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Covenants requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota may not be enforceable in North Dakota."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "for North Dakota franchisees, North Dakota law shall apply."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a waiver of trial by jury are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring the franchisee to consent to a waiver of exemplary and punitive damages are not enforceable under Section 51-19-09 of the North Dakota Franchise Investment Law."
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- Article 18 of the Franchise Agreement is hereby amended by the addition of the following language: "Provisions requiring a franchisee to consent to a limitation of claims within one year have been determined to be unfair, unjust and inequitable within the intent of Section 51-19-09 of the North Dakota Franchise Investment Law. Therefore, for North Dakota franchisees, the statute of limitations under North Dakota Law will apply."
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- 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. This provision supersedes any other term of any document executed in connection with the franchise.
Each provision of this amendment shall be effective only to the extent, with respect to such provision, that the jurisdictional requirements of North Dakota Law are met independently without reference to this amendment.
IN WITNESS WHEREOF, the parties have duly executed and delivered this North Dakota amendment to Casiola Franchise LLC Franchise Agreement on the same date as the Franchise Agreement was executed.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, the franchise agreement includes amendments specific to certain states that address the enforceability of waivers. For instance, the New York Franchise Agreement Amendment 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 means that if a provision in the standard franchise agreement could be interpreted as the franchisee giving up their rights under New York law, that provision will not be considered a valid waiver in New York.
Similarly, the Minnesota Franchise Agreement Amendment ensures that all rights enjoyed by the franchisee and any causes of action arising in the franchisee's favor from the provisions of the Minnesota Franchise Act, Minn. Stat. Section 80C.14 et seq. and Minnesota Rules 2860.4400(D), shall remain in force. The amendment emphasizes that its intent is to satisfy the non-waiver provisions of the Minnesota Rules 2860.4400(D). This prevents Casiola from enforcing any clause that would cause a franchisee to unknowingly surrender their legal protections under Minnesota franchise law.
The North Dakota Franchise Agreement Amendment explicitly states that certain provisions requiring North Dakota franchisees to sign a general release upon renewal, consent to termination or liquidated damages, or agree to covenants not to compete are not enforceable in North Dakota. Additionally, provisions requiring North Dakota franchisees to consent to the jurisdiction of courts outside of North Dakota, waive trial by jury, or waive exemplary and punitive damages are also not enforceable. These state-specific amendments collectively ensure that Casiola franchisees are not unknowingly or unwillingly waiving their rights under applicable state franchise laws. The Hawaii Franchise Agreement Amendment also includes similar non-waiver provisions related to the Hawaii Franchise Investment Law, further protecting franchisees' rights concerning non-renewal, termination, and transfer of the Franchise Agreement.