Are Commission+ Fees deducted when calculating Gross Rental Revenues+ for a Casiola Business?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ry Third Party Service Fees
"Gross Rental Revenues+" means the total amount of all gross revenues, sales, receipts, and fees paid including, by an end-user customer and/or their agent or intermediary, in connection with the rental, leasing, property management, insuring, servicing, reserving and/or use of a property in connection with the Approved Services and Products and/or that is the subject of and/or benefits from the Approved Services and Products from or derived by you, a customer of your Casiola Business, or any other person or Corporate Entity from business conducted or which started in, on, from or through your Casiola Business and/or your Operating Market, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Commission+ Fees are not deducted when calculating and determining Gross Rental Revenues+. Gross Rental Revenues+ do not include any taxes that are collected and remitted to the proper taxing authority. Gross Rental Revenues+ do not include Ancillary Third Party Service Fees as designated and determined by Franchisor.
2 Commencement of Minimum Requirements – The Monthly Minimum Royalty Requirement and, therefore Month 1, commences on the earlier of the opening of your Casiola Business or 120 days from the signing of your Franchise Agreement.
"Commission+ Fees" – means fees, receipts, and commissions paid, payable, and/or due to a Casiola Business for property management services and all other Approved Services and Products of a Casiola Business except for Ancillary Third Party Service Fees. Commission+ Fees are typically calculated and charged as a percentage of 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.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Commission+ Fees are not deducted when calculating Gross Rental Revenues+. Gross Rental Revenues+ are defined as the total amount of all gross revenues, sales, receipts, and fees paid by an end-user customer in connection with the rental, leasing, property management, insuring, servicing, reserving, and/or use of a property related to the Approved Services and Products. This includes revenues derived by the franchisee, a customer, or any other person or entity from business conducted through the Casiola Business or its Operating Market, regardless of compliance with the Franchise Agreement.
This means that Casiola franchisees will pay royalties and other fees based on the total revenue generated before any Commission+ Fees are subtracted. Commission+ Fees are defined as fees, receipts, and commissions paid to a Casiola Business for property management services and all other Approved Services and Products, excluding Ancillary Third Party Service Fees. These fees are typically calculated as a percentage of Gross Rental Revenues+ and are set by Casiola, then paid directly to Casiola by the customers of each Casiola Business.
Gross Rental Revenues+ do not include any taxes that are collected and remitted to the proper taxing authority, nor do they include Ancillary Third Party Service Fees as designated and determined by Casiola. Ancillary Third Party Service Fees are fees paid to a Casiola Business as reimbursement compensation for services, parts, and supplies provided to a customer of the Casiola Business by a third-party provider of ancillary services such as cleaning, plumbing, and handyman services as authorized and designated by Casiola.
For a prospective franchisee, this is important because it clarifies the base upon which royalties are calculated. By not deducting Commission+ Fees from Gross Rental Revenues+, Casiola ensures that royalties are calculated on the highest possible revenue figure, which could increase the amount of royalties paid. Franchisees should understand this calculation and factor it into their financial projections.