Can Casiola change its commission pricing and promotion requirements?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that Franchisor's commission pricing, commission pricing calculations, fees, Commission Agreement Terms, Rental Agreement terms, and promotion requirements may change from time to time and may vary depending on geography (towns, cities, states, region) and other factors designated by Franchisor including, Franchisor's designation of any local, regional or national promotional campaigns. Franchisee agrees that Franchisor's pricing and promotional requirements may directly or indirectly impact Commission+ Fees, fees and prices charged by Franchisee's Casiola Business and that Franchisor may designate specific pricing to be included in advertisements and promotional materials. Without limitation to the foregoing, Franchisor, in Franchisor's Reasonable Business Judgment, shall exclusively determine and set the prices and fees related to User Network and Processing System Fees and the method by which Commission+ Fees are calculated including, all fees and expenses to be deducted from rental revenue and rental receipts before calculating and determining any Commission+ Fees.
Franchisee agrees that nothing contained in this Article 3.M. shall be deemed a representation by Franchisor that if Franchisee follows Franchisor's pricing, fee, or promotional requirements Franchisee will generate a profit. Franchisee agrees that any pricing, fee and promotional requirements designated by Franchisor may or may not optimize the revenues or profitability of Franchisee's Casiola Business. Franchisee waives any and all claims related to Franchisor's establishment of prices and fees charged at Franchisee's Casiola Business. At all times, Franchisee agrees to inform Franchisor of all prices and fees charged by Franchisee's Casiola Business and to inform Franchisor of any modifications to Franchisee's prices and fees.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola has the authority to modify commission pricing and promotion requirements. The franchisee agrees that Casiola's commission pricing, calculations, fees, Commission Agreement terms, Rental Agreement terms, and promotion requirements may change over time. These changes can also vary based on location, such as towns, cities, states, or regions, and other factors that Casiola designates, including local, regional, or national promotional campaigns.
These pricing and promotional requirements may directly or indirectly affect the fees and prices charged by the franchisee's Casiola business. Casiola may also specify particular pricing for advertisements and promotional materials. Casiola has the exclusive right to determine and set prices and fees related to User Network and Processing System Fees, as well as the method for calculating Commission+ Fees, including all deductions from rental revenue before determining these fees.
The franchisee acknowledges that Casiola's pricing, fee, and promotional requirements do not guarantee profitability. These requirements may or may not optimize the revenues or profitability of the franchisee's business. The franchisee waives any claims related to Casiola's pricing and fee structure. The franchisee must inform Casiola of all prices and fees charged by their business and any modifications to these prices and fees.
This means that as a Casiola franchisee, you must adhere to the pricing and promotional strategies set by Casiola, which can change. While Casiola has the right to set these prices and promotions, it does not guarantee that these strategies will lead to profitability for your franchise. It is important to stay informed about any changes and communicate your pricing with Casiola to remain compliant with the franchise agreement.