What are the different commission amounts for Casiola's Optional Owner Growth Property service, and how are they determined?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Interim Management Service | $500 per day plus actual costs incurred by us | As invoiced | Payable if we elect to manage the Franchised Business due to a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager. |
| Optional Owner Growth Property Commission | $1,500 per contract for properties with a total annual revenue up to $40,000; $2,500 per contract for properties with total annual revenues between $40,000 and $80,000; $3,500 per contract for properties with total annual revenue exceeding $80,000. | As invoiced | Payable if you request our optional services in signing homeowner contracts on your behalf and must be paid within 30 days of signing. |
| Relocation | $2,000 | On demand | Payable if we approve a relocation request. |
| Transfer | $10,000 | On demand | Payable if we approve your transfer request and upon signing our then current Franchise Agreement. |
| Renewal | $5,000 | On signing renewal Franchise Agreement | Payable if we approve your renewal request and upon signing our then cu |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, franchisees may request Casiola's optional services in signing homeowner contracts on their behalf. This service, called the Optional Owner Growth Property service, incurs a commission payable by the franchisee. The amount of this commission varies based on the total annual revenue of the property in question.
The commission is $1,500 per contract for properties with total annual revenue up to $40,000. For properties generating total annual revenues between $40,000 and $80,000, the commission is $2,500 per contract. The highest commission is $3,500 per contract, which applies to properties with total annual revenue exceeding $80,000.
This commission is invoiced to the franchisee and must be paid within 30 days of signing the homeowner contract. This fee is in addition to other fees detailed in Item 6, such as the ongoing royalty fee, technology fee, and marketing expenses. Prospective franchisees should consider these commission costs when evaluating the financial viability of utilizing Casiola's Optional Owner Growth Property service to expand their business.