To whom are the fees payable according to the Casiola FDD?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Note 1: Type of Fee – The above table describes fees and payments that you must pay to us, our affiliates, or that our affiliates may impose or collect on behalf of a third party. All fees are uniformly imposed for all franchises offered under this Disclosure Document, are recurring, are not refundable, and are payable to us, unless otherwise specified. At our election we may directly collect the Gross Sales of your Casiola Business and we will pre-deduct all of the fees and payments due to us, our affiliates, or our designated suppliers, and we will remit the balance to you. If applicable and, at our election, we require payment from you subject to our specification and instruction, including, our election to have fees automatically drafted from your business bank account or automatically debited or charged to your business bank account. You will be required to sign an ACH Authorization Form (Franchise Agreement, Exhibit 4) permitting us to electronically debit your designated bank account for payment of all fees payable to us and/or our affiliates. You must deposit the Gross Sales of your Casiola Business into the designated bank accounts that are subject to our ACH authorization. As directed by us, you must install and use, at your expense, the pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit and/or electronic funds transfer systems that we designate. You must pay all service charges and fees charged to you by your bank so that we may electronically debit your bank account.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, most fees are payable to Casiola or its affiliates. Specifically, the document states that fees and payments are to be paid to "us, our affiliates, or that our affiliates may impose or collect on behalf of a third party." Casiola retains the right to collect the Gross Sales of a franchisee's business and pre-deduct any fees or payments owed to them, their affiliates, or designated suppliers, remitting the balance to the franchisee.
Casiola may also require franchisees to make payments according to their specifications, including automatic drafts from the franchisee's business bank account. Franchisees are required to sign an ACH Authorization Form, which allows Casiola to electronically debit their bank account for all fees payable to Casiola and/or its affiliates. Franchisees must deposit their business's Gross Sales into designated bank accounts subject to ACH authorization. Casiola can also direct franchisees to install and use specific pre-authorized payment, point of sale, credit card processing, automatic payment, automated banking, electronic debit, and/or electronic funds transfer systems at the franchisee's expense.
In some instances, fees may be payable to entities other than Casiola or its affiliates. For example, if a local or regional advertising cooperative is established, franchisees will be required to make ongoing payments to the cooperative. Additionally, franchisees are responsible for paying all service charges and fees charged by their bank related to electronic debits made by Casiola. Understanding the specific recipients of various fees is crucial for prospective franchisees to accurately budget and manage their finances.