Can the Casiola Brand Development Fund be used for creative development that is prepared by Franchisor?

According to Casiola's 2024 Franchise Disclosure Document, the Brand Development Fund may be used to cover the costs and expenses incurred by Casiola for creative development that is prepared by Casiola. The fund can be used for reasonable salaries, wages, administrative costs, and overhead that Casiola incurs in activities related to the administration, activities, and brand awareness goals of the Brand Development Fund. 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, and development of Digital Media.

This means that a portion of the fees that Casiola franchisees contribute to the Brand Development Fund can be used to compensate Casiola for its work in creating advertising and marketing materials. This includes the development of creative concepts and materials. Casiola 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.

It is important to note that Casiola Businesses owned by Casiola or its affiliates are not required to pay into the Brand Development Fund. While Casiola will endeavor to utilize the Brand Development Fund to develop advertising and marketing materials and programs, Casiola undertakes no obligation to ensure that expenditures by the Brand Development Fund in or affecting any geographic area are proportionate or equivalent to the contributions to the Brand Development Fund by Casiola Businesses operating in that geographic area or that any Casiola Businesses will benefit directly or in proportion to its contribution to the Brand Development Fund from the development of advertising and marketing materials. Franchisees are still obligated to contribute to the fund, even if they do not directly benefit from specific marketing campaigns. Franchisees participate in all advertising, marketing, promotions, research and public relations programs instituted by the Brand Development Fund.