Does the definition of Gross Rental Revenues+ for a Casiola business include fees paid by an intermediary?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (j) Gross Rental Revenues+ means the total amount of all gross revenues, receipts, sales, and fees paid by an enduser customer and/or their agent or intermediary in connection with the rental, leasing, and/or use of a short-term rental property in connection with the Approved Services and Products. Although Commission Fees are typically calculated as a percentage of Gross Rental Revenues+, Commission Fees are not pre-deducted when calculating and determining Gross Rental Revenues+. Gross Rental Revenues+ are not the equivalent of the Gross Sales of a Casiola Business. A significant portion of Gross Rental Revenues+ less Commission Fees represents compensation and funds payable and due to the underlying property owners of each respective short-term 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, Gross Rental Revenues+ includes fees paid by an intermediary. Specifically, Gross Rental Revenues+ is defined as the total of all gross revenues, receipts, sales, and fees paid by an end-user customer or their agent or intermediary for the rental, leasing, or use of a short-term rental property related to approved services and products.
This definition is important for prospective Casiola franchisees because it clarifies what income is included when calculating revenues. The definition explicitly includes payments made through an intermediary, ensuring that all revenue streams are accounted for, regardless of how the payment is processed. This comprehensive approach to revenue calculation provides transparency and helps franchisees understand how their commission fees are determined.
It is important to note that while Commission Fees are calculated as a percentage of Gross Rental Revenues+, they are not deducted when calculating Gross Rental Revenues+. Also, Gross Rental Revenues+ is not the same as the Gross Sales of a Casiola Business, as a significant portion of Gross Rental Revenues+ less Commission Fees represents compensation due to the property owners.