What happens to Casiola franchisee receipts if the franchise is abandoned or not actively operated?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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;
(5) Permanently cease accessing, immediately disconnect from, and discontinue using any and all digital media, intra-nets, cloud based systems, and/or servers that store, maintain, and/or provide access to the Operations Manual, Confidential Information, and all other standards, specifications of
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
The 2024 Casiola Franchise Disclosure Document outlines the obligations of the franchisee upon termination or expiration of the franchise agreement. Casiola franchisees must immediately pay all outstanding sums and fees to Casiola, including royalty fees, advertising contributions, and any other amounts owed for products and services. This ensures that Casiola receives all due compensation before the franchisee ceases operations.
Upon termination, expiration, or transfer of the agreement, the franchisee must immediately cease operating as a Casiola franchise, except as directed in writing by Casiola for completing wind-down activities. The franchisee must also refrain from representing themselves as a current or former Casiola franchisee, again with exceptions only for completing wind-down activities as instructed by Casiola. This protects Casiola's brand identity and prevents unauthorized representation.
The franchisee must also permanently cease using the Casiola system, including confidential information, licensed marks, booking and management system data, and the operations manual, except as directed by Casiola for wind-down activities. Additionally, all confidential materials, equipment, software, and property owned by Casiola must be returned, with the franchisee only allowed to retain copies of the franchise agreement, correspondence, and documents required by law. This ensures that Casiola's proprietary information and assets are protected after the franchise agreement ends.
Finally, the franchisee must cease accessing and using any digital media, intranets, cloud-based systems, or servers that store the operations manual, confidential information, and other specifications of Casiola. These strict requirements ensure a clean break and protect Casiola's operational and intellectual property assets when a franchise agreement concludes.