What does a Casiola franchisee agree to regarding the impact of pricing and promotional requirements on their business?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that Franchisor's commission pricing, commission pricing calculations, fees, Commission Agreement Terms, Rental Agreement terms, and promotion requirements may change from time to time and may vary depending on geography (towns, cities, states, region) and other factors designated by Franchisor including, Franchisor's designation of any local, regional or national promotional campaigns. Franchisee agrees that Franchisor's pricing and promotional requirements may directly or indirectly impact Commission+ Fees, fees and prices charged by Franchisee's Casiola Business and that Franchisor may designate specific pricing to be included in advertisements and promotional materials. Without limitation to the foregoing, Franchisor, in Franchisor's Reasonable Business Judgment, shall exclusively determine and set the prices and fees related to User Network and Processing System Fees and the method by which Commission+ Fees are calculated including, all fees and expenses to be deducted from rental revenue and rental receipts before calculating and determining any Commission+ Fees.
Franchisee agrees that nothing contained in this Article 3.M. shall be deemed a representation by Franchisor that if Franchisee follows Franchisor's pricing, fee, or promotional requirements Franchisee will generate a profit. Franchisee agrees that any pricing, fee and promotional requirements designated by Franchisor may or may not optimize the revenues or profitability of Franchisee's Casiola Business. Franchisee waives any and all claims related to Franchisor's establishment of prices and fees charged at Franchisee's Casiola Business. At all times, Franchisee agrees to inform Franchisor of all prices and fees charged by Franchisee's Casiola Business and to inform Franchisor of any modifications to Franchisee's prices and fees.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, a franchisee acknowledges that Casiola's commission pricing, calculations, fees, agreement terms, rental agreement terms, and promotion requirements can change over time and vary based on location and other factors determined by Casiola. These factors can include local, regional, or national promotional campaigns.
The franchisee agrees that Casiola's pricing and promotional requirements may directly or indirectly affect the fees and prices charged by their Casiola business. Casiola may also specify pricing to be included in advertisements and promotional materials. Casiola has the exclusive right to determine and set prices and fees related to User Network and Processing System Fees, as well as the method for calculating Commission+ Fees, including all deductions from rental revenue and receipts before determining these fees.
The franchisee acknowledges that Casiola does not guarantee profitability even if the franchisee follows the franchisor's pricing, fee, or promotional requirements. The franchisee also accepts that these requirements may not optimize the revenues or profitability of their Casiola business. The franchisee waives any claims related to Casiola's pricing and fee establishment. The franchisee must inform Casiola of all prices and fees charged by their business and any modifications to these prices and fees.