Are Casiola franchisees required to make payments based on financial information?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that under no circumstance is Franchisee entitled to withhold payments due to Franchisor under this Agreement. Among other things and without limitation to the foregoing, Franchisee expressly agrees that any claim by Franchisee as to the alleged non-performance of Franchisor's obligations shall not permit and/or entitle Franchisee to withhold payments due Franchisor under this Agreement.
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 Franc
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, Casiola franchisees are not entitled to withhold payments due to Casiola under any circumstances. This includes any claims of non-performance by Casiola. Casiola exclusively determines and sets 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.
Casiola'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 and other factors designated by Casiola, including local, regional, or national promotional campaigns. These pricing and promotional requirements may directly or indirectly impact Commission+ Fees, fees, and prices charged by the franchisee.
The FDD states that Casiola's pricing, fee, or promotional requirements do not guarantee that franchisees will generate a profit. Franchisees must adhere to the financial obligations outlined in the franchise agreement, regardless of their financial performance or disputes with Casiola.