What is the condition under which Casiola may institute a Brand Development Fund?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
At all times and from time to time, as determined by Franchisor, in Franchisor's Reasonable Business Judgment, Franchisor may institute, implement, maintain, delegate and administer a brand development fund (the "Brand Development Fund"). The following shall apply to the Brand Development Fund at all times throughout the Term:
(1) If Franchisor institutes the Brand Development Fund, Franchisee shall pay, on the Due Date, a mandatory and continuing fee to the Brand Development Fund in an amount equal to a percentage of Franchisee's gross Commission+ Fees (as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment) for each monthly Accounting Period (the "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 2% of the Gross Rental Revenues+ of the Franchised Business for each monthly Accounting Period or, instantly on a per transaction basis;
(2) Franchisor will provide Franchisee with written notice of the percentage of Franchisee's gross Commission+ Fees that Franchisee is required to contribute to the Brand Development Fund.
Upon such written notice to Franchisee, the percentage of Franchisee's gross Commission+ Fees to be paid by Franchisee to the Brand Development Fund will be applicable for each and every monthly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, Casiola may institute, implement, maintain, delegate, and administer a brand development fund (the "Brand Development Fund") at all times and from time to time, as determined by Casiola, in Casiola's Reasonable Business Judgment.
If Casiola institutes the Brand Development Fund, franchisees must pay a mandatory and continuing fee to the Brand Development Fund. This fee is a percentage of the franchisee's gross Commission+ Fees, as determined and designated by Casiola in its Reasonable Business Judgment, for each monthly Accounting Period. However, franchisees will not be required to contribute more than 2% of the Gross Rental Revenues+ of the Franchised Business for each monthly Accounting Period or, instantly on a per transaction basis.
Casiola will provide written notice to the franchisee of the percentage of gross Commission+ Fees that the franchisee is required to contribute to the Brand Development Fund. Once this written notice is given, the specified percentage will be applicable for each monthly Accounting Period thereafter during the Term, unless otherwise designated by Casiola in writing. This fund is intended for the general enhancement of the System brand as associated with the Licensed Marks and general public brand recognition and awareness of the Licensed Marks.