factual

What are Commission Fees for a Casiola business, excluding Ancillary Third Party Service Fees?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (f) Commission Fees means fees and commissions paid, payable, and/or due to a Casiola Business for property management services except for Ancillary Third Party Service Fees. Commission Fees are typically calculated and charged as a percentage of the Gross Rental Revenues+ of a property managed by a Casiola Business. Commission Fees are set and determined by us and paid directly to us by customers of each Casiola Business.
Orlando 11
$941,428 $678,919
$256,520 $244,861
$1,197,948 $923,780
Select Performance Data
Number of Individual Unit Rental Properties Under 126 125
Management During Calendar Year
Aggregate Gross Rental Revenues Collected on $4,877,629 $3,375,022
Behalf of Customers
Average Commission Fees per Individual Unit Rental $7,471.65 $5,431.35
Property
Median Commission Fees per Individual Unit Rental $7,808.26 $5,123.39
Property
High Commission Fees for Individual Unit Rental $26,634.01 $25,622.45
Property
Low Commission Fees for Individual Unit Rental $74.38 $52.26
Property
Damage Waiver Fee Margin for Individual Unit $2,035.87 $1,958.89
Rental Property
Orlando 21
--- --- ---
$544,946 $308,610
$148,487 $111,304
$693,433 $419,914
Select Performance Data
Number of Individual Unit Rental Properties Under 56 59
Management During Calendar Year
Aggregate Gross Rental Revenues Collected on $2,823,419 $1,568,574
Behalf of Customers
Average Commission Fees per Individual Unit Rental $9,731 $5,231
Property
Median Commission Fees per Individual Unit Rental $9,951 $4,351
Property
High Commission Fees for Individual Unit Rental $31,093 $17,146
Property
Low Commission Fees for Individual Unit Rental $152 $53
Property
Damage Waiver Fee Margin for Individual Unit $2,652 $1,887
Rental Property
Orlando 31
--- --- ---
$620,812 $522,176
$169,159 $188,329
$789,971 $710,505
Select Performance Data
Number of Individual Unit Rental Properties Under 103 117
Management During Calendar Year
Aggregate Gross Rental Revenues Collected on $3,216,485 $2,542,298
Behalf of Customers
Average Commission Fees per Individual Unit Rental $6,027 $4,463
Property
Median Commission Fees per Individual Unit Rental $6,619 $4,610
Property
High Commission Fees for Individual Unit Rental $14,149 $13,059
Property
Low Commission Fees for Individual Unit Rental $92 $167
Property
Damage Waiver Fee Margin for Individual Unit $1,642 $1,610
Rental Property

Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–45)

What This Means (2024 FDD)

According to Casiola's 2024 Franchise Disclosure Document, Commission Fees are defined as fees and commissions paid to a Casiola Business for property management services, excluding Ancillary Third Party Service Fees. These fees are typically calculated as a percentage of the Gross Rental Revenues of a property managed by the Casiola Business. Casiola sets and determines these Commission Fees, and customers of each Casiola Business pay them directly to Casiola.

The FDD provides data on average, median, high, and low Commission Fees for Individual Unit Rental Properties for three Company Owned Outlets (Orlando 1, Orlando 2, and Orlando 3) during the 2022 and 2023 calendar years. For Orlando 1, the average Commission Fees per Individual Unit Rental Property were $7,471.65 in 2022 and $5,431.35 in 2023. The median Commission Fees were $7,808.26 in 2022 and $5,123.39 in 2023. The high Commission Fees reached $26,634.01 in 2022 and $25,622.45 in 2023, while the low Commission Fees were $74.38 in 2022 and $52.26 in 2023.

For Orlando 2, the average Commission Fees per Individual Unit Rental Property were $9,731 in 2022 and $5,231 in 2023. The median Commission Fees were $9,951 in 2022 and $4,351 in 2023. The high Commission Fees were $31,093 in 2022 and $17,146 in 2023, while the low Commission Fees were $152 in 2022 and $53 in 2023. For Orlando 3, the average Commission Fees per Individual Unit Rental Property were $6,027 in 2022 and $4,463 in 2023. The median Commission Fees were $6,619 in 2022 and $4,610 in 2023. The high Commission Fees reached $14,149 in 2022 and $13,059 in 2023, while the low Commission Fees were $92 in 2022 and $167 in 2023.

It's important to note that these figures represent the performance of Company Owned Outlets and, as the FDD states, individual results may differ, and there is no assurance that a franchisee will earn as much. These figures also do not include Ancillary Third Party Service Fees, which are excluded from the definition of Commission Fees. A prospective franchisee should consider these figures as a reference point and conduct their own due diligence to assess the potential financial performance of a Casiola franchise.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.