factual

When does a Casiola Franchisee's termination of the agreement take effect?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

action, and Franchisee shall grant Franchisor 30 days from receipt of said notice to cure the alleged act upon which such legal action is to be based (hereinafter, the "30 Day Cure Notice"). Franchisee agrees that the 30 Day Cure Notice is a strict condition precedent to Franchisee commencing, or otherwise instituting, legal action or proceeding against Franchisor for any reason whatsoever.

ARTICLE 17 OBLIGATIONS UPON TERMINATION OR EXPIRATION

17.A. PAYMENT OF AMOUNTS OWED TO FRANCHISOR

Without limitation as to any other Article or provision of this Agreement, upon expiration or termination of this Agreement for any reason, Franchisee shall immediately pay to Franchisor all sums and fees due from Franchisee to Franchisor under the terms of this Agreement including, but not limited to Royalty Fees and Advertising Contributions and all other sums and fees due from Franchisee to Franchisor and/or Franchisor affiliates and/or suppliers for products and services including, but not limited to, System Supplies.

17.B. CEASE OPERATIONS AND PROTECTION OF THE SYSTEM

Upon expiration, termination, or Transfer of this Agreement for any reason, Franchisee shall immediately:

  • (1) Permanently cease to be a franchise owner of the Casiola Business that was the subject of this Agreement and cease to operate such Casiola Business under the System, except as directed by Franchisor in writing and related to Franchisee's performance and completion of Wind-Down Activities as designated and determined by Franchisor in Franchisor's Reasonable Business Judgment;
  • (2) Refrain from directly or indirectly, holding oneself/itself out to any person or entity, or represent themselves/itself as a present or former Casiola franchisee, except as directed by Franchisor in writing and related to Franchisee's performance and completion of Wind-Down Activities as designated and determined by Franchisor in Franchisor's Reasonable Business Judgment;
  • (3) Permanently cease to use, except as directed by Franchisor in writing and related to Franchisee's performance and completion of Wind-Down Activities as designated and determined by Franchisor in Franchisor's Reasonable Business Judgment, in any manner: (a) the System including, without limitation, the Confidential Information, the Licensed Marks, the Bookings and Management System Data, and the Operations Manual; (b) any methods, procedures, or techniques associated with the System in which Franchisor possesses proprietary rights or constitute Franchisor's trade secrets; (c) System Supplies, including communicating with or ordering products from Franchisor's designated suppliers and vendors of System Supplies; (d) the Approved Services and Products; and (e) any other advertising, marketing, media, and any other information, documents or things associated with Franchisor, the System, the Licensed Marks, Casiola Businesses, the Franchised Business, and Franchisee's former Casiola Business, including, without limitation, any confidential, proprietary methods, procedures, descriptions of products, techniques, trade secrets, proprietary marks, distinctive forms, slogans, symbols, signs, stationary, advertising material, articles, logos, devices, items and all other things, tangible or intangible, associated with Franchisor, the System, the Licensed Marks, and Casiola Businesses;
  • (4) Return to Franchisor the Operations Manual (including any and all parts, supplements, and copies of the Operations Manual), the Confidential Information (including without limitation the Bookings and Management System Data and all customer lists and information), and all other confidential materials, equipment, software, information, and property owned by Franchisor and all copies thereof provided, however, that Franchisee may retain Franchisee's copies of this Agreement, correspondence between Franchisor and Franchisee, but not including Confidential Information that may be contained in or attached thereto, and other documents that Franchisee needs to retain pursuant to applicable law;

Source: Item 23 — RECEIPTS (FDD pages 47–209)

What This Means (2024 FDD)

According to the 2024 Casiola Franchise Disclosure Document, upon the termination, expiration, or transfer of the Franchise Agreement, several obligations take effect immediately for the franchisee. These obligations include the immediate payment of all outstanding sums and fees owed to Casiola, encompassing royalty fees, advertising contributions, and any other dues for products and services. Additionally, the franchisee must immediately cease operating as a Casiola franchise, refraining from representing themselves as a current or former franchisee, unless explicitly directed otherwise by Casiola in writing for the purpose of completing wind-down activities.

Furthermore, the franchisee is required to take necessary actions to cancel any assumed names related to the licensed marks and transfer control of the Bookings and Management System, along with all associated data and customer information, to Casiola. This also includes transferring or disconnecting all telephone numbers, email addresses, and online listings associated with the Casiola business as directed by the franchisor.

Moreover, the franchisee must adhere to restrictive covenants and obligations outlined in the agreement, such as those detailed in Article 6, unless otherwise directed by Casiola in writing for wind-down activities. Within 30 days of the termination, expiration, or transfer, the franchisee must provide written proof to Casiola demonstrating compliance with all terms and obligations that persist after the agreement's end. All obligations that expressly or by their nature are intended to survive the termination, expiration, or transfer of the agreement will remain in full effect until fully satisfied or expired by their terms.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.