Does the definition of 'Ancillary Third Party Service Fees' for a Casiola business include services provided directly by the Casiola Business?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ees paid to an Outlet and net of the portion of the accommodation fee paid to a property owner.
- (b) Ancillary Third Party Service Fees means Gross Sales that do not include Commission Fees and relate, exclusively, to the fees paid to a Casiola Business by either a property owner or guest as compensation to the Casiola Business for services, parts, and supplies provided to a customer of the Casiola Business directly by the Casiola Business or by a third party provider such as, house cleaning, laundry, plumbing, handyman, pest control, and related property maintenance services, hired by the Casiola Business. Each Casiola Business is directly responsible for timely paying and reimbursing all service providers providing services and/or products relating to the Ancillary Third Party Service Fees.
- (c) Ancillary Third Party Service Fee Margin means Ancillary Third Party Service Fees less only the direct expenses incurred in hiring and paying the third party maintenance service providers.
- (d) Calendar Year means the 12 month period commencing on January 1 and ending on December 31.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–45)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the definition of 'Ancillary Third Party Service Fees' does include compensation for services provided directly by the Casiola Business. These fees are defined as gross sales, excluding commission fees, paid to a Casiola Business by a property owner or guest.
Specifically, these fees compensate the Casiola Business for services, parts, and supplies provided directly by the Casiola Business or by a third-party provider. Examples of such services include house cleaning, laundry, plumbing, handyman services, pest control, and related property maintenance. The Casiola Business is responsible for paying and reimbursing all service providers involved.
This means that a Casiola franchisee can generate revenue not only through commission fees for property management but also through direct provision of services and supplies, or by coordinating third-party services. The 'Ancillary Third Party Service Fee Margin' is calculated by subtracting the direct expenses of hiring and paying third-party maintenance service providers from the 'Ancillary Third Party Service Fees'. Casiola does not charge royalty fees on revenue earned from Ancillary Third Party Service Fees.