Can Casiola or its affiliates be the sole supplier of System Supplies for a Casiola franchise?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
n and performance. Franchisee shall purchase approved or designated types of construction and decorating materials, fixtures, equipment, furniture and signs including, but not limited to, System Supplies, only from suppliers approved or designated by Franchisor from time to time in writing and/or in the Operations Manual.
3.E. SYSTEM SUPPLIES
Franchisee shall exclusively purchase and use the System Supplies in the operations of the Franchised Business. Franchisee shall exclusively purchase the System Supplies from the supplier and/or suppliers and vendor and/or vendors designated by Franchisor from time to time. Franchisee agrees that control over the nature, quality, branding and source of the System Supplies is critical to the System and that irrespective of the availability of substitute products, supplies, equipment and/or sources of supply, Franchisee shall only purchase and use the System Supplies as designated by Franchisor and only from those suppliers designated and approved by Franchisor. Franchisee agrees that in many instances Franchisor and/or Franchisor's affiliates may be and/or may become the sole and exclusive supplier of the System Supplies.
**3.F.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola franchisees are required to exclusively purchase and use System Supplies in the operation of their franchised business. Franchisees must purchase these System Supplies from suppliers and vendors designated by Casiola.
The FDD states that Casiola believes that controlling the nature, quality, branding, and source of System Supplies is critical to the Casiola system. Therefore, regardless of the availability of substitute products, franchisees must only purchase and use System Supplies as designated and approved by Casiola.
Furthermore, Casiola indicates that in many instances, Casiola and/or its affiliates may be or may become the sole and exclusive supplier of System Supplies. Casiola also reserves the right to designate a single supplier or distributor for any services, products, equipment, supplies, or materials, including System Supplies, and to require franchisees to exclusively use that designated supplier, which could be Casiola or its affiliates.