Can the Casiola Brand Development Fund be used for franchisee advisory councils?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (5) Franchisee agrees that the Brand Development Fund may be used to pay various costs and expenses of Franchisor for such reasonable salaries, wages, administrative costs and overhead as Franchisor may incur in activities reasonably related to the administration, activities and/or the brand awareness goals of the Brand Development Fund including expenses incurred by Franchisor 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 that is
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 may be used to cover expenses related to franchisee advisory councils. Specifically, the fund can be used to pay for costs and expenses incurred by Casiola for advertising councils, franchisee advisory councils, marketing, and other related activities.
This means that a portion of the fees that Casiola franchisees contribute to the Brand Development Fund could be allocated to support the operations and activities of franchisee advisory councils. These councils may provide guidance on the administration of the Brand Development Fund and marketing matters. However, the franchisor retains sole discretion over the strategic direction, creative concepts, and allocation of the fund.
It's important to note that participation in these advertising, marketing, promotions, research, and public relations programs instituted by the Brand Development Fund is mandatory for franchisees. Casiola also has the right to establish a council to provide guidance respecting the administration of the Brand Development Fund and marketing matters concerning the Brand Development Fund. The council shall only serve in an advisory capacity and Casiola will select the members of the council which may be comprised of employees of Casiola, Casiola franchisees, and third parties.