Are Casiola franchisees required to pay 'Brand Development Fund Fees'?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Franchisee agrees to participate in all advertising, marketing, promotions, research and public relations programs instituted by the Brand Development Fund;
- (7) Casiola Businesses owned by Franchisor or Franchisor's affiliates are not required to pay any Brand Development Fund Fee or contribute to or make any contribution 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.
- (4) Franchisee agrees that the purpose of the advertising, media, marketing and activities financed by the Brand Development Fund is and shall be for the general enhancement of the System brand as associated with the Licensed Marks and general public brand recognition and awareness of the Licensed Marks.
Franchisor may use the Brand Development Fund to promote or benefit any type of Casiola Businesses in the System.
Franchisee agrees that Franchisee's failure to derive any such benefit will not serve as a basis for a reduction or elimination of its obligation to contribute to the Brand Development Fund.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, franchisees are required to pay a Brand Development Fund Fee. The Brand Development Fund Fee is outlined in Article 9 of the franchise agreement. Franchisees must pay this fee to Casiola, its affiliates, or designees.
The Brand Development Fund is used for advertising, media placement, marketing, and public relations programs, all of which are directed by Casiola. The fund aims to enhance the Casiola brand and increase public recognition of its licensed marks. However, the fund will not directly market the franchisee's specific business unless Casiola deems it appropriate.
Franchisees agree to participate in all advertising, marketing, promotions, research, and public relations programs instituted by the Brand Development Fund. Casiola has the discretion to use the Brand Development Fund to promote or benefit any type of Casiola business within the system, including those in a specific region of the United States. Franchisees are obligated to contribute to the Brand Development Fund regardless of whether they directly benefit from its expenditures in their geographic area. Casiola businesses owned by Casiola or its affiliates are not required to pay the Brand Development Fund Fee.