Can the Casiola Brand Development Fund be used for advertising councils?

According to Casiola's 2024 Franchise Disclosure Document, the Brand Development Fund may be used to cover expenses incurred by Casiola for advertising councils. Specifically, the fund can be used for costs related to the administration, activities, and brand awareness goals. These activities include expenses for advertising, advertising councils, franchisee advisory councils, marketing, product and service testing, product and service development, maintenance, evaluation and monitoring of the Bookings and Management Systems, upgrades to the System Website, development of Digital Media and creative development.

This means that a portion of the fees that Casiola franchisees contribute to the Brand Development Fund could be allocated to support advertising councils, which may include franchisee advisory councils. Casiola retains discretion over how the Brand Development Fund is used, and it is not obligated to ensure that expenditures in any geographic area are proportionate to the contributions from Casiola businesses in that area.

For a prospective franchisee, this indicates that contributing to the Brand Development Fund does not guarantee direct or proportionate benefits to their specific location. However, participation in advertising, marketing, promotions, research, and public relations programs instituted by the Brand Development Fund is mandatory. Franchisees should be aware that the Brand Development Fund is not a trust and Casiola is not a trustee or fiduciary of the fund, allowing Casiola to manage the funds within its general accounts.