How does a Casiola franchisee pay the Brand Development Fund Fee?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
he "Brand Development Fund Fee"), provided, however, Franchisee will not be required to contribute more than 2% of the Gross Rental Revenues+ of the Franchised Business for each monthly Accounting Period or, instantly on a per transaction basis;
- (2) Franchisor will provide Franchisee with written notice of the percentage of Franchisee's gross Commission+ Fees that Franchisee is required to contribute to the Brand Development Fund. Upon such written notice to Franchisee, the percentage of Franchisee's gross Commission+ Fees to be paid by Franchisee to the Brand Development Fund will be applicable for each and every monthly Accounting Period thereafter during the Term until otherwise designated by Franchisor in writing. The Brand Development Fund Fee shall be paid to Franchisor on the Due Date and in accordance with the payment terms and method set forth in Article 5.B. for the payment of Royalty Fees or as otherwise designated by Franchisor;
- (3) Franchisor, in Franchisor's Reasonable Business Judgment, shall direct all advertising, media placement, marketing and public relations programs and activities financed by the Brand Development Fund, with sole discretion over the strategic direction, creative concepts, materials, and endorsements used by the Brand Development Fund, and the geographic, market, and media placement and allocation thereof.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Brand Development Fund Fee is paid to Casiola on the Due Date. The payment terms and method are the same as those outlined in Article 5.B for Royalty Fees, unless Casiola designates otherwise.
Franchisees must pay the Brand Development Fund Fee for each monthly Accounting Period. The percentage of the franchisee's gross Commission+ Fees that must be paid to the Brand Development Fund will be specified in a written notice from Casiola. This percentage will remain in effect for each monthly Accounting Period during the term of the agreement, unless Casiola provides a different written notice.
It's important to note that Casiola Businesses owned by Casiola or its affiliates are not required to pay the Brand Development Fund Fee. The Brand Development Fund is used for advertising, marketing, and public relations programs directed by Casiola, with sole discretion over the strategic direction and creative materials. The fund aims to enhance the System brand and general public recognition of the Licensed Marks.