Does the fee deferral condition for Casiola apply to all franchisees, or only those in California?

According to Casiola's 2024 Franchise Disclosure Document, the fee deferral condition applies specifically to franchisees in California. The document states that the California Department of Financial Protection and Innovation has determined that Casiola has not demonstrated adequate capitalization and/or must rely on franchise fees to fund operations. As a result, the Commissioner has imposed a fee deferral condition.

This condition mandates that Casiola defer the collection of all initial fees from California franchisees until all pre-opening obligations are completed, and the franchisee is open for business. For California franchisees who sign a development agreement, the payment of development and initial fees attributable to a specific unit in their development schedule is deferred until that unit is open.

This deferral provides a significant benefit to new Casiola franchisees in California, as it reduces their upfront financial burden. Instead of paying initial fees before opening, they can use those funds for other startup costs. However, it's important to note that this condition is specific to California and does not apply to franchisees in other states. Prospective franchisees outside of California should be prepared to pay the initial fees as outlined in the FDD.