Does the Casiola Franchise Agreement require a Statement of Franchisee's Owners?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
[Item 1: THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES]
ITEM 1 THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES
Casiola Franchise LLC, the franchisor of the Franchised Business, is referred to in this disclosure document (the "Disclosure Document") as "we", "us" or "our" as the context requires. A franchisee is referred to in this Disclosure Document as "you" and "your" as the context requires. If you are a limited liability company, partnership or other legal entity (a "Corporate Entity"), our Franchise Agreement will also apply to your individual owners, shareholders, members, officers, directors, and other principals.
[Item 23: RECEIPTS]
(4) The transferee shall be bound by all terms and conditions of this Agreement, and each owner of the transferee shall personally execute the Franchise Owner Agreement and Guaranty in the form attached to this Agreement as Exhibit 1;
(5) All obligations of Franchisee under this Agreement, the Ancillary Agreements, and all applicable Rental Agreements shall be assumed by the transferee and each individual owner of transferee in a manner satisfactory to Franchisor;
(6) Franchisee and each Owner must execute the General Release attached to this Agreement as Exhibit 5 releasing Franchisor, Franchisor's affiliates and Franchisor's past and present officers, directors, shareholders, members, partners, agents, representatives, independent contractors, servants and employees, of any and all claims against Franchisor for matters arising on, or before, the effective date of the Transfer;
Source: Item 22 — CONTRACTS (FDD page 47)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, if a franchisee is a limited liability company, partnership, or other legal entity, the Franchise Agreement will also apply to the individual owners, shareholders, members, officers, directors, and other principals. This means that the owners of the franchisee entity may be required to execute certain agreements.
Specifically, in the event of a transfer of the franchise, each owner of the transferee is required to personally execute the Franchise Owner Agreement and Guaranty in the form attached to the Franchise Agreement as Exhibit 1. Additionally, all obligations of the franchisee under the Franchise Agreement, Ancillary Agreements, and Rental Agreements must be assumed by the transferee and each individual owner of the transferee in a manner satisfactory to Casiola.
Furthermore, the franchisee and each owner must execute a General Release, attached as Exhibit 5, releasing Casiola and its affiliates from any claims arising on or before the transfer's effective date. These requirements ensure that Casiola has recourse against the individual owners and that all parties are bound by the terms of the Franchise Agreement, even in the event of a transfer.