Under what conditions might state law supersede the requirement to execute a general release as a condition to assignment, sale, or transfer of a Casiola franchise?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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:
-
- 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.
WASHINGTON FRANCHISE AGREEMENT AMENDMENT
Amendments to the Casiola Franchise Agreement:
A release or waiver of rights executed by a franchisee may not include rights under the Washington Franchise Investment Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
-
- You must sign a general release of claims if you renew or transfer your franchise. California Corporations Code Section 31512 voids a waiver of your rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516).
-
- Business and Professions Code Section 20010 voids a waiver of your rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043).
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.
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, state laws in Maryland, Washington, California, and Minnesota may supersede the requirement to execute a general release as a condition of the sale, assignment, or transfer of a Casiola franchise.
In Maryland, the general release required as a condition of renewal, sale, and/or assignment/transfer does not apply to any liability under the Maryland Franchise Registration and Disclosure Law. Similarly, in Washington, a release or waiver of rights executed by a franchisee cannot include rights under the Washington Franchise Investment Protection Act, except when executed pursuant to a negotiated settlement after the agreement is in effect and where the parties are represented by independent counsel.
California Corporations Code Section 31512 voids a waiver of rights under the Franchise Investment Law (California Corporations Code Sections 31000 through 31516), and Business and Professions Code Section 20010 voids a waiver of rights under the Franchise Relations Act (Business and Professions Code Sections 20000 through 20043). In Minnesota, Item 17 of the FDD shall not provide for a prospective general release of claims against Casiola that may be subject to the Minnesota Franchise Law, as Minnesota Rule 2860.4400D prohibits a franchisor from requiring a franchisee to assent to a general release.
These stipulations mean that while Casiola's standard franchise agreement may include a general release requirement, franchisees in these states retain certain rights and protections under their respective state franchise laws, which cannot be waived through a general release, particularly concerning liabilities and disputes arising from franchise regulations.