What happens if a Casiola franchisee fails to pay the Advertising Contribution?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
- (2) To hold Franchisee and Franchisee's Owners liable for, and recover from each of them, jointly and severally, all payments, fees, monetary obligations, financial obligations, interest, and charges due and owing to Franchisor from Franchisee pursuant to this Agreement, the Ancillary Agreements, and/or any other agreements between Franchisee and Franchisor, including, without limitation, Royalty Fees and Advertising Contributions with each and every payment and obligation to be accelerated and due immediately.
- (3) To hold Franchisee and Franchisee's Owners liable for, and recover from each of them, jointly and severally, lost revenues, profits, and fees including, but not limited to Royalty Fees, Brand Development Fund Fee, Advertising Contributions, and all other fees, revenues and/or expenses that would have been paid to Franchisor, under the terms of this Agreement and throughout the Term of this Agreement, had a breach not occurred and had Franchisor not terminated this Agreement.
- (1) To void and terminate this Agreement, and thereafter to market, sell, transfer, convey and assign the rights granted to Franchisee under this Agreement to any other person or entity in Franchisor's sole discretion and without compensation to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, if a franchisee fails to pay advertising contributions, several consequences may occur. Upon termination or expiration of the franchise agreement for any reason, the franchisee must immediately pay all outstanding sums and fees, including advertising contributions.
Additionally, Casiola has the right to hold the franchisee and their owners liable for all payments, fees, monetary obligations, financial obligations, interest, and charges due to Casiola. This includes advertising contributions, which will be accelerated and due immediately. Casiola can also recover lost revenues, profits, and fees, including advertising contributions, that would have been paid throughout the term of the agreement had the breach not occurred and the agreement not been terminated.
Casiola may also void and terminate the agreement, and then market, sell, transfer, convey, and assign the rights granted to the franchisee to another party at their sole discretion, without providing any compensation to the franchisee.