What is the fee for Payment Non-Compliance under the Casiola franchise agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
| Operations Non-Compliance | $500 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs and legal fees. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Payment Non-Compliance fee is $150 per occurrence. This fee is charged if a franchisee fails to make a payment to Casiola on time, as required by the Franchise Agreement. The fee is due within 14 days of the invoice date.
In addition to the $150 fee, the franchisee is also responsible for interest, costs, and legal fees associated with the late payment. The interest on overdue amounts is 18% per annum from the due date. This could significantly increase the amount owed if payments are not made promptly.
This policy is fairly standard in franchising, as franchisors rely on timely payments from franchisees to maintain their own financial stability and provide ongoing support and services. Franchisees should ensure they have systems in place to manage payments and avoid incurring these additional costs. Failing to comply with payment terms can lead to further penalties or even termination of the franchise agreement.