How is the Brand Development Fund Fee calculated for Casiola franchisees?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Upon such written notice to Franchisee, the percentage of Franchisee's gross Commission+ Fees to be paid by Franchisee to the Brand Development Fund will be applicable for each and every monthly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing.
The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees or as otherwise designated by Franchisor;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Brand Development Fund Fee is calculated as a percentage of the franchisee's gross Commission+ Fees. The specific percentage is determined by Casiola and communicated to the franchisee in writing. This percentage will then be applied to each monthly accounting period throughout the term of the franchise agreement, unless Casiola provides written notice of a change.
Commission+ Fees are defined as fees and commissions paid to a Casiola Business for property management services and all other approved services and products, excluding Ancillary Third Party Service Fees. These fees are typically calculated and charged as a percentage of the Gross Rental Revenues of a property managed by the Casiola Business. It is important to note that Commission+ Fees are paid directly to Casiola or its designee.
Franchisees are obligated to pay the Brand Development Fund Fee to Casiola on the specified Due Date, following the same payment terms and methods used for Royalty Fees, or as otherwise directed by Casiola. Casiola has the discretion to manage and direct all advertising, media placement, marketing, and public relations programs financed by the Brand Development Fund. Casiola also has sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, as well as the geographic, market, and media placement and allocation thereof.
Casiola may use the Brand Development Fund to cover various costs and expenses, including salaries, wages, administrative costs, and overhead related to the administration and brand awareness goals of the fund. These expenses can include advertising, franchisee advisory councils, marketing, product and service testing, website upgrades, and digital media development. Casiola Businesses owned by Casiola or its affiliates are not required to pay the Brand Development Fund Fee or contribute to the Brand Development Fund.