Is the Brand Development Fund Fee calculated monthly 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 based on a percentage of the franchisee's gross Commission+ Fees. This percentage is determined by Casiola and can be adjusted with written notice to the franchisee.
The Brand Development Fund Fee is applicable for each monthly Accounting Period after the franchisee receives written notice of the percentage of gross Commission+ Fees to be paid. The fee is then paid to Casiola on the Due Date, following the same payment terms and methods as the Royalty Fees, unless Casiola specifies otherwise.
This means that a Casiola franchisee's contribution to the Brand Development Fund is not a fixed monthly amount but rather a variable amount that depends on their gross Commission+ Fees for that month. Franchisees should be aware that this percentage can change during the term of the agreement, impacting their monthly expenses.