Where can I find information about 'Brand Development Fund Fees' for a Casiola franchise?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
tion and sales information that is pre-populated, entered, recorded, stored and/or maintained in the Bookings and Management System. As between Franchisor and Franchisee, Franchisor shall own all Bookings and Management System Data.
- "Brand Development Fund" shall have the meaning defined and set forth in Article 9.A. of this Agreement.
- "Brand Development Fund Fee" shall have the meaning defined and set forth in Article 9.A. of this Agreement.
- "Casiola Business(es)" means any business or businesses owned and/or operated by Franchisor, Franchisor's affiliates or an authorized franchisee that utilizes or is required to utilize the System and Licensed Marks.
- "Closed Market" means any and all Corporate Account customers that presently, or in the future, are located within Franchisee's Operating Market.
- "Commission Agreement" means the actual and/or form agreement designated and authorized by Franchisor for use by Franchisee in connection with, among other things, offering and providing the Approved Services and Products on behalf of property owner customers of the Franchised Business, the calculation and determination of Commission+ Fees and other charges, fees, and expenses, and other terms and conditions upon which the Approved Services and Products are provided. From time to time, Franchisor
may modify and amend the terms and conditions of the Commission Agreement in Franchisor's Reasonable Business Judgment.
"Commission+ Fees" means fees and commissions paid, payable, and/or due to a Casiola Business for property management services and all other Approved Services and Products of a Casiola Business including, but not limited to, damage waiver fees and, except only Ancillary Third Party Service Fees. As between Franchisee and customers of Franchisee's Casiola Business, Commission+ Fees are typically calculated and charged as a percentage of the Gross Rental Revenues+ of a property managed by a Casiola Business and/or benefitting from the Approved Services and Products. Commission+ Fees shall be paid directly to Franchisor and/or Franchisor's designee.
"Competitive Business" means any business that is the same as or similar to a Casiola Business, or any business that offers and/or provides property management services for short-term rental properties.
"Confidential Information" means all of our trade secrets, methods, techniques, procedures, data and information (as same may exist as of the Effective Date of this Agreement and as may be developed, modified and supplemented in the future) constituting and comprising: (a) methods, specifications, standards, policies, procedures, information, concepts, programs and systems relating to the development, establishment, marketing, promotion and operation of Casiola Businesses; (b) information concerning consumer preferences for services, products, materials and supplies used or sold by, and specifications for and knowledge of suppliers of certain materials, equipment, products, supplies and procedures used and/or sold by Casiola Businesses; (c) information concerning customers, customer lists, email lists, database lists, product sales, operating results, financial performance and other financial data of Casiola Businesses; (d) customer lists and information related to Casiola Business; (e) Bookings and Management System Data; (f) current and future information contained in the Operations Manual; and (g) Know-How.
"Confidentiality Agreement" means the sample form of "Confidentiality Agreement" attached to this Agreement as Exhibit 2.
"Contact Center" means any and all organized communication systems and methods approved by Franchisor for communicating with property owners and end-user guest customers.
"Controlling Interest" shall exist for the following individuals, Owners, partners and/or entities: (a) (If Franchisee is a corporation) a controlling interest shall exist for such shareholders and Owners of the voting shares of stock of Franchisee as (i) shall permit voting control of Franchisee on any issue and/or (ii) shall prevent any other person, group, combination, or entity from blocking voting control on any issue or exercising any veto power;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, information regarding the Brand Development Fund Fee can be found in Article 9.A of the franchise agreement. The FDD defines both "Brand Development Fund" and "Brand Development Fund Fee" as having the meanings set forth in that specific article of the agreement.
The Brand Development Fund is used for advertising, marketing, and public relations programs directed by Casiola. Casiola has sole discretion over the strategic direction, creative concepts, and media placement of these programs. The fund may also cover costs related to the Bookings and Management Systems, website maintenance, and digital media development. Franchisees are required to participate in all programs instituted by the Brand Development Fund.
Casiola franchisees pay the Brand Development Fund Fee as a percentage of their gross Commission+ Fees. This fee is paid to Casiola on the same date and using the same method as the royalty fees, unless otherwise specified by Casiola. Casiola may change the percentage of gross Commission+ Fees paid to the Brand Development Fund by providing written notice to the franchisee. Casiola Businesses owned by Casiola or its affiliates are not required to pay the Brand Development Fund Fee.
The FDD also clarifies that the Brand Development Fund is not a trust, and Casiola is not a trustee or fiduciary of the fund. Casiola can deposit the fund's monies into its general accounts and is not required to segregate them. Casiola may spend more or less than the collected contributions in a given year and can borrow or invest funds as needed. Franchisees can request a summary statement of the fund's collections and costs from the previous fiscal year. However, Casiola does not guarantee that expenditures in any area will be proportionate to the contributions from Casiola Businesses in that area, nor that any franchisee will directly benefit in proportion to their contribution.