Are 'Ancillary Third Party Service Fees' paid to a Casiola Business considered reimbursement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Ancillary Third Party Service Fees" means fees paid to a Casiola Business as reimbursement to the Casiola Business for services, parts, and supplies provided to a customer of the Casiola Business by an Ancillary Third Party Service Provider.
At all times Franchisor possesses full discretion and authority, in Franchisor's Reasonable Business Judgment, to designate and determine what constitutes and qualifies as Ancillary Third Party Service Fees.
"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.
"Gross Sales" means the total gross amount of all revenues, receipts, and sales from all business and customers of the Franchised Business including, but not limited to, Gross Rental Revenues+ and Ancillary Third Party Service Fees. Gross Sales do not include sales or use taxes that are collected and remitted to the proper taxing authority.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, 'Ancillary Third Party Service Fees' are defined as fees paid to a Casiola Business to reimburse the business for services, parts, and supplies provided to a customer by an Ancillary Third Party Service Provider.
In simpler terms, if a Casiola franchisee uses a third-party service provider (an 'Ancillary Third Party Service Provider') to provide services, parts, or supplies to a customer, the fees collected to cover those costs are considered a reimbursement. Casiola retains full discretion to determine what qualifies as 'Ancillary Third Party Service Fees.'
Gross Rental Revenues+ do not include Ancillary Third Party Service Fees as designated and determined by Casiola. Gross Sales do include Ancillary Third Party Service Fees. This distinction is important for franchisees as it affects how their revenues are calculated and reported. Understanding the difference between Gross Rental Revenues+ and Gross Sales, and how Ancillary Third Party Service Fees are treated in each, is crucial for accurate financial management and reporting for a Casiola Business.