Is Casiola or its affiliates an approved supplier of source restricted goods and services, other than booking services, the Property Management System, and contact center services?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
who meet our specifications and standards.
We are the designated supplier of all booking services, the Property Management System, and contact center services that you are required to use. Except as disclosed in the preceding sentence, we are not and our affiliates are not approved suppliers of the source restricted goods and services identified below.
If we have previously approved a supplier, and their standards fall below our designated standards, we will revoke our approval. We will notify you in writing of us revoking our approval.
If you want to purchase or lease a source restricted item from a supplier that has not been previously approved or designated by us in writing, you must send us a written request for approval and submit additional information that we may request. We may charge you a supplier review and testing fee and we may request that you send us samples from the supplier for testing and documentation from the supplier for evaluation. We may also require, subject to our discretion, that we be allowed to inspect the supplier's facilities. We will notify you of our approval or disapproval within a reasonable time, not to exceed 60 days, after we receive your written request for approval and all additional information and samples that we may request. We may, in our discretion, withhold our approval. When evaluating the approval of a particular supplier, among other things, we consider: whether the supplier can demonstrate to our reasonable satisfaction the ability to meet our standards, specifications and production requirements, the supplier's quality control, whether or not we are the exclusive supplier of the particular item, whether or not our affiliate or affiliates are the exclusive supplier of the particular item, and whether or not the supplier's approval, in our sole determination, will allow us to advance the overall interests of the System.
We estimate that your purchase of goods and services from suppliers according to our specifications, including your purchase of goods or services from our designated exclusive suppliers to represent approximately 90% of your total purchases and leases in establishing the Franchised Business and approximately 20% of the on-going operating expenses of the Franchised Business. We currently require that you purchase or lease the following source restricted goods and services from either us or our designated supplier:
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- System Supplies You must maintain an initial and ongoing inventory of System Supplies. You must purchase the System Supplies, as designated by us, from us, our affiliates, and/or our designated suppliers.
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- Property Management System You are required to license, purchase and utilize the Casiola Property Management System from us, our affiliates, or our parent company. At all times we will have direct access to all information entered by you and/or maintained in our Casiola operations software application. We will earn revenue from your licensing and use of our application.
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- Bookings Platforms and Payment Processing You must utilize our services or the services of our designated affiliate for all rental bookings, customer contacts, and payment, and credit card processing. We will also exclusively designate all online travel agencies that you may use.
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Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 20–24)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola is the designated supplier of booking services, the Property Management System, and contact center services. However, Casiola and its affiliates are generally not approved suppliers for other source-restricted goods and services, with the exception of those previously mentioned.
Prospective Casiola franchisees should understand that they are obligated to purchase or lease certain goods and services from approved or designated suppliers, including Casiola or its affiliates, to maintain quality and system standards. These source-restricted goods and services must meet Casiola's specifications, as detailed in their manuals. Casiola estimates that purchases from designated suppliers will constitute approximately 90% of the initial investment and 20% of ongoing operating expenses.
If a franchisee wishes to use a supplier not already approved by Casiola, they must submit a written request for approval, potentially incurring a supplier review and testing fee. Casiola may also request samples and documentation for evaluation and may inspect the supplier's facilities. Casiola's approval process considers the supplier's ability to meet Casiola's standards, quality control measures, and the overall benefit to the Casiola system. Casiola will notify the franchisee of their decision within 60 days of receiving the request and all required information.
Casiola may receive rebates, payments, or other benefits from suppliers based on franchisee purchases and reserves the right to implement and expand rebate programs in the future. As of the issuance date of the 2024 Disclosure Document, Casiola has not received revenue from suppliers from franchisee purchases of source-restricted products or services. Franchisees do not receive any material benefits for using designated or approved suppliers.