What is a Casiola franchisee obligated to pay besides the initial franchise fee?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
amount designated by Franchisor but provided that such monthly amount does not exceed $150 per user, per month. Franchisee agrees that this Technology Fee is a general administrative fee and is not connected to any particular service. The Technology Fee shall be paid to Franchisor on the first Due Date for each respective month.
5.D. OTHER FEES
As designated by Franchisor in this Agreement, the Manual or otherwise, Franchisee shall pay the following additional fees to either Franchisor, Franchisor's affiliate(s), or Franchisee's designee(s):
- (1) Brand Development Fund Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees, the Brand Development Fund Fee as set forth in Article 9 of this Agreement.
- (2) Customer Satisfaction Non-Compliance Fee Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees, a Customer Satisfaction Non-Compliance Fee upon demand of Franchisor following the occurrence of a Customer Satisfaction Non-Compliance Event.
- (3) Non-Compliance Fees Franchisee shall pay to Franchisor all Non-Compliance Fees in accordance with the terms of this Agreement including, but not limited to, Payment Non-Compliance Fees, Operations Non-Compliance Fees, and Reporting Non-Compliance Fees.
- (4) Supplemental Training Fees Franchisee shall pay to Franchisor all training fees in accordance with the terms of this Agreement including, but not limited to, Additional Initial Training Fees and Supplemental Training Fees.
- (5) Quality Assurance Fees Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees on-going weekly, monthly, and/or per use fees related to quality assurance fees assessed by Franchisor related to periodic inspections of Franchisee's Casiola Business, quality inspections related to short-term rental properties and rental customer experiences, and secret shopper type evaluations. Quality assurance fees shall be assessed and determined by Franchisor, in Franchisor's Reasonable Business Judgment.
- (6) Annual Conference Attendance Fees Franchisee shall be responsible for all expenses of its personnel attending the Annual System Conference including travel, meals and lodging. Franchisee shall be required to pay to Franchisor an Annual Conference Attendance Fee. Franchisee agrees that if Franchisee fails to attend the Annual System Conference that Franchisor shall, nevertheless, charge and Franchisee shall pay the Annual Conference Attendance Fee – even if Franchisor waives such fee for franchisees who attend the Annual System Conference.
- (7) All Other Fees and Obligations Set Forth in this Agreement Franchisee shall pay to Franchisor, Franchisor's affiliates, or Franchisor's designees such other fees, charges and expenses as set forth in this Agreement and in accordance with the terms of this Agreement or, otherwise, in accordance with the Manuals and/or Franchisor's standards and specifications.
- (8) Wind-Down Activities All fees set forth in this Agreement and this Article 5 including, but not limited to Royalty Fees and Brand Development Fund Fees, shall be applicable to all Wind-Down Activities.
- (9) Optional Owner Growth Property Commission Fees Franchisee shall pay to Franchisor a fee equal to; $1,500 per contract for properties with a total annual revenue up to $40,000;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, franchisees are responsible for several fees beyond the initial franchise fee. These include Brand Development Fund Fees, which are detailed in Article 9 of the agreement, and Customer Satisfaction Non-Compliance Fees, which are charged if the franchisee's customer satisfaction ratings fall below a certain threshold. Franchisees must also pay Non-Compliance Fees for various violations of the franchise agreement, such as Payment, Operations, and Reporting Non-Compliance Fees.
Additional financial obligations for Casiola franchisees include Supplemental Training Fees for any additional training required, and Quality Assurance Fees for periodic inspections and evaluations of the business. Franchisees are also responsible for Annual Conference Attendance Fees and all associated travel, meals, and lodging expenses. These fees can be paid to Casiola, its affiliates, or designees.
Furthermore, if a franchisee transfers their business to a new owner, they must pay a Transfer Fee of $10,000 to Casiola. Upon termination or expiration of the franchise agreement, franchisees must pay all outstanding sums and fees, including Royalty Fees, Advertising Contributions, and any other amounts owed for products and services. Failure to maintain satisfactory customer service levels can result in Customer Satisfaction Non-Compliance Fees ranging from $250 to $750 per month, potentially increasing if non-compliance persists for more than three months.