Does Casiola charge Royalty Fees on Ancillary Third Party Service Fees?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| Combined Fees and Select Data for Orlando 1, 2, and 31 | ||
|---|---|---|
| 2022 Calendar Year | 2023 Calendar Year | |
| Total | Total | |
| Damage Waiver Fees | $574,165 | $544,494 |
| Cancellation Fee Margin2 | $42,716 | $17,568 |
| Accommodation Fee Margin2 | $32,941 | $50,485 |
| Ancillary Third Party Service Fee Margin2 | $446,929 | $196,862 |
| 1Combined Outlet Information: Table 4 represents select combined data for Orlando 1, Orlando 2, | ||
| and Orlando 3. All fees relate to combined data and financial performance related to Orlando 1, | ||
| Orlando 2 and Orlando 3. | ||
| 2Royalty Fees: We do not charge Royalty Fees on sales and revenue earned by an Outlet for | ||
| Cancellation Fees, Accommodatio |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–45)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola does not charge royalty fees on revenue earned from Ancillary Third Party Services. The FDD specifies that royalty fees are not charged on sales and revenue from Cancellation Fees, Accommodation Fees for early check-in/late check-out, or Ancillary Third Party Service Fees.
Ancillary Third Party Service Fees are defined as gross sales, excluding commission fees, that relate exclusively to fees paid to a Casiola Business by a property owner or guest. These fees compensate the Casiola Business for services, parts, and supplies provided directly or through a third-party provider for services such as house cleaning, laundry, plumbing, handyman services, pest control, and related property maintenance. The franchisee is responsible for paying and reimbursing all service providers for these services.
This policy of not charging royalty fees on Ancillary Third Party Service Fees can be beneficial for a Casiola franchisee. It allows the franchisee to retain a larger portion of the revenue generated from these services, potentially increasing their profitability. This can be a significant advantage, especially considering that these services are essential for property management and can contribute substantially to the overall revenue of the business. The franchisee benefits from increased revenue without the added cost of royalty fees, making the franchise opportunity more attractive.