Does 'Ancillary Third Party Service Fees' for a Casiola business include Commission Fees?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ees paid to an Outlet and net of the portion of the accommodation fee paid to a property owner.
- (b) Ancillary Third Party Service Fees means Gross Sales that do not include Commission Fees and relate, exclusively, to the fees paid to a Casiola Business by either a property owner or guest as compensation to the Casiola Business for services, parts, and supplies provided to a customer of the Casiola Business directly by the Casiola Business or by a third party provider such as, house cleaning, laundry, plumbing, handyman, pest control, and related property maintenance services, hired by the Casiola Business. Each Casiola Business is directly responsible for timely paying and reimbursing all service providers providing services and/or products relating to the Ancillary Third Party Service Fees.
- (c) Ancillary Third Party Service Fee Margin means Ancillary Third Party Service Fees less only the direct expenses incurred in hiring and paying the third party maintenance service providers.
- (d) Calendar Year means the 12 month period commencing on January 1 and ending on December 31.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–45)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, 'Ancillary Third Party Service Fees' do not include 'Commission Fees.' The FDD explicitly defines 'Ancillary Third Party Service Fees' as gross sales that exclude commission fees. These fees relate to compensation paid to a Casiola business by a property owner or guest for services, parts, and supplies provided directly by the Casiola business or by a third-party provider. These services can include house cleaning, laundry, plumbing, handyman services, pest control, and related property maintenance.
The document specifies that each Casiola business is responsible for paying and reimbursing all service providers for services and/or products related to these 'Ancillary Third Party Service Fees.' This distinction is important for franchisees to understand, as it clarifies which revenues are subject to royalty fees and how different revenue streams are managed within the Casiola business model.
'Commission Fees,' on the other hand, are defined as fees and commissions paid to a Casiola business for property management services, explicitly excluding 'Ancillary Third Party Service Fees.' These commission fees are typically calculated as a percentage of the gross rental revenues of a property managed by the Casiola business. Casiola sets and determines these commission fees, and customers of each Casiola business pay them directly to Casiola.