What is the consequence if an owner of a Casiola franchise is convicted of a felony?

According to the 2024 Casiola Franchise Disclosure Document, if a Casiola franchisee or an owner of the franchisee is convicted of a felony crime, or pleads guilty or nolo contendere to a felony crime, it constitutes a breach of the franchise agreement. This gives Casiola grounds to terminate the franchise agreement.

This provision in the franchise agreement is fairly standard. Franchise agreements typically include clauses that allow the franchisor to terminate the agreement if the franchisee or its owners engage in activities that could harm the brand's reputation or the overall franchise system. A felony conviction is generally considered such an activity.

For a prospective Casiola franchisee, this means that maintaining a clean criminal record is essential for both the franchisee and any owners of the franchise. A felony conviction could not only result in the loss of the franchise but also potentially expose the franchisee and its owners to additional legal and financial liabilities under the franchise agreement.