Is the Casiola Franchisor liable for taxes levied upon the Franchisee?

The 2024 Casiola Franchise Disclosure Document addresses the franchisor's liability for debts, losses, costs, or expenses incurred by the franchisee's business, particularly in situations where the franchisor appoints a manager due to the franchisee's death or disability. Specifically, Casiola states that it will not be liable for any debts, losses, costs, or expenses incurred in the operations of the franchisee’s business. This includes debts to any creditor for products, materials, supplies, or services purchased by the franchisee's business.

This disclaimer of liability extends to situations where Casiola appoints a manager to maintain the operations of the franchisee's business, ensuring that the franchisee remains solely responsible for all financial obligations. Even when Casiola provides management services, it is not liable for the financial performance or obligations of the franchise. Casiola retains the right to charge a reasonable fee for these management services and may discontinue them at any time.

While the FDD excerpts explicitly state that Casiola is not liable for debts, losses, costs, or expenses incurred in the operations of the franchisee’s business, it does not specifically mention tax liabilities. A prospective franchisee should seek clarification from Casiola regarding responsibility for taxes levied upon the franchisee to fully understand their financial obligations.