According to the Casiola FDD, what is the definition of 'Gross Rental Revenues+'?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
"Gross Rental Revenues+" means the total amount of all gross revenues, sales, receipts, and fees paid including, by end-user customers and/or their agents or intermediaries, in connection with the rental, leasing, insuring, property management, damage waivers, servicing, reserving and/or use of a property in connection with the Approved Services and Products and/or that is the subject of and/or benefits from the Approved Services and Products from whatever source derived, whether in form of cash, credit, agreements to pay or other consideration including the actual retail value of any goods or services traded, borrowed, or received by Franchisee or a customer of Franchisee's Casiola Business in exchange for any form of non, or money consideration (whether or not payment is received at the time of the sale), from or derived by Franchisee, a customer of Franchisee's Casiola Business, or any other person or Corporate Entity from business conducted or which started in, on, from or through Franchisee's Casiola Business and/or Franchisee's Operating Market, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Commission+ Fees are not deducted when calculating and determining Gross Rental Revenues+. Gross Rental Revenues+ do not include sales or use taxes that are collected and remitted to the proper taxing authority. Gross Rental Revenues+ do not include Ancillary Third Party Service Fees as designated and determined by Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Gross Rental Revenues+ is defined as the total gross revenues, sales, receipts, and fees paid by end-user customers or their agents related to the rental, leasing, insuring, property management, damage waivers, servicing, reserving, and/or use of a property in connection with approved services and products. This revenue can come from any source and includes cash, credit, agreements to pay, or other forms of consideration, including the retail value of traded goods or services.
For a Casiola franchisee, this definition is crucial because it forms the basis for calculating royalties and other fees owed to the franchisor. The definition explicitly states that Commission+ Fees are not deducted when calculating Gross Rental Revenues+, but sales or use taxes collected and remitted to the proper taxing authority are excluded. Also excluded are Ancillary Third Party Service Fees as designated and determined by Casiola.
It is important to note that the revenue is included regardless of whether payment is received at the time of sale and includes revenue derived from business conducted in compliance or violation of the Franchise Agreement. This broad definition ensures that Casiola receives its share of virtually all revenue generated from the franchised business's operations related to property rentals and services. Franchisees should pay close attention to how these revenues are tracked and reported to ensure compliance with the franchise agreement.