Are the Casiola Franchisee's affiliates subject to the same terms as the Franchisee regarding Ancillary Agreements?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Ancillary Agreements" means, individually and collectively, each and every agreement between: (a) Franchisor and Franchisee, but not including this Agreement; and (b) Franchisor and each of Franchisee's Owners, whether individually and/or collectively.
If Franchisee is, at any time, a Corporate Entity, Franchisee agrees that each Owner shall execute, sign and deliver to Franchisor the Franchise Owner Agreement and Guaranty attached to this Agreement as Exhibit 1 and, in doing so, among other things, will individually, jointly, and severally, guarantee Franchisee's obligations under this Agreement and personally bind themselves to confidentiality and non-competition covenants and restrictions.
Franchisee agrees that the foregoing covenants and obligations shall also apply to Franchisee's Owners and that Franchisee's Owners shall each execute and deliver to Franchisor the Franchise Owner Agreement and Guaranty in the form attached to this Agreement as Exhibit 1.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, the term "Ancillary Agreements" refers to each agreement between Casiola and the franchisee, excluding the franchise agreement itself, and also includes agreements between Casiola and the franchisee's owners.
Specifically, if the franchisee is a corporate entity, each owner is required to sign and deliver a Franchise Owner Agreement and Guaranty to Casiola. By signing this agreement, the owners individually, jointly, and severally guarantee the franchisee's obligations under the Franchise Agreement. They also personally commit to confidentiality and non-competition covenants and restrictions.
Furthermore, during the term of the agreement, the restrictive covenants regarding unfair competition and in-term non-competition obligations apply not only to the franchisee but also to the franchisee's owners. These owners must also execute and deliver the Franchise Owner Agreement and Guaranty to Casiola, reinforcing their commitment to these obligations.