Where does the Casiola franchise agreement discuss the reservation of rights?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 23: RECEIPTS]
2.D. RESERVATION OF RIGHTS
Franchisor on behalf of itself, its affiliates and its assigns retains all rights, on any and all terms and conditions that Franchisor deems advisable and without any compensation or consideration to Franchisee to engage in the following activities (the "Reserved Rights"): (a) operate and grant to others the right to operate a Franchised Business, Casiola Business and/or other businesses using the System and Licensed Marks at locations outside Franchisee's Operating Market; (b) acquire, develop, or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that are Competitive Businesses, and after such acquisition, merger or affiliation to own and operate and to franchise or license others to own and operate and to continue to own and operate such businesses, including Competitive Businesses (but not utilizing the Licensed Marks) within Franchisee's Operating Market; (c) be acquired by, develop, or merge with or otherwise affiliate with one or more businesses of any kind, including businesses that are Competitive Businesses, even if such business or businesses presently or, in the future, own and operate and franchise or license others to own and operate such businesses, including Competitive Businesses (but not utilizing the Licensed Marks) within Franchisee's Operating Market; (d) use the Licensed Marks and System to distribute the Approved Services and Products offered and sold by the Franchised Business or products and services similar to the Approved Services and Products offered and sold by the Franchised Business to and/or for the benefit of Corporate Accounts and/or Corporate Account Customers within or outside your Operating Market; and (e) use the Licensed Marks and System and to license others to use the Licensed Marks and System, to engage in all other activities not expressly prohibited by the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Item 23, Section D discusses the reservation of rights. Casiola retains specific rights that allow it to operate and grant franchises to others outside the franchisee's operating market. They can also engage in business activities, including those that compete with the franchisee, as long as they do not use Casiola's licensed marks.
Specifically, Casiola reserves the right to acquire, develop, merge, or affiliate with other businesses, even those that are competitive, and to operate or franchise these businesses, excluding the use of Casiola's trademarks, within the franchisee's operating market. Casiola can also be acquired by, develop, or merge with businesses, including competitors, under the same conditions.
Furthermore, Casiola retains the right to use its trademarks and system to distribute approved services and products to corporate accounts and customers, both within and outside the franchisee's operating market. Finally, Casiola reserves the right to use its trademarks and system, and to license others to do the same, for any activities not expressly prohibited by the franchise agreement. This section clarifies that Casiola maintains broad control over its brand and business operations, even within a franchisee's territory, with certain limitations.