What is the Casiola franchisee's obligation regarding site selection and acquisition/lease (Item 9) and how does it relate to the franchisor's site review and approval process (Item 11) and the territory granted in Item 12 and the potential rentable short-term rental properties in Item 5?

According to Casiola's 2024 Franchise Disclosure Document, franchisees have obligations regarding site selection and acquisition/lease, as detailed in Item 9, which references Articles 2 and 3.C of the Franchise Agreement and Items 7 and 11 of the FDD. Item 11 indicates that Casiola will grant the franchisee the right to operate within a designated Operating Market, with the site review and approval of this market occurring at the time of signing the Franchise Agreement.

Casiola franchisees may manage their business from a home-based administrative office if permitted by law. However, if a franchisee elects to lease a back-end administrative office or operations center, the location must be within their Operating Market and approved by Casiola. The franchisee is responsible for selecting and securing the site, with Casiola providing site selection guidelines. The franchisee bears all costs associated with locating and evaluating potential sites for their administrative office. The home office or business office must be within the operating market or within a 40-minute drive of it.

Item 12 states that Casiola grants the franchisee the right to develop and operate one Casiola Business within a designated Operating Market. The scope of the Operating Market varies depending on local factors, market conditions, and the number of territories purchased. Generally, a territory consists of a resort, vacation area, market, or geographic area with up to approximately 5,000 potential rentable individual unit short-term rental properties within a 40-minute drive of the administrative office. Additional territories may be added subject to availability, Casiola's approval, and payment of additional Initial Franchise Fees identified in Item 5.