What happens if the Casiola Franchisee's Owners breach any Ancillary Agreements?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (l) Franchisee and/or an Owner, as applicable and whether individually or jointly, breaches or is in default of an Ancillary Agreement, and, if the applicable agreement provides for the opportunity to cure, fails to timely cure the breach or default of the Ancillary Agreement, including, without limitation, the Franchise Owner Agreement and Guaranty;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if a franchisee or an owner breaches or defaults on any Ancillary Agreement, and fails to cure the breach if the agreement allows for it, this constitutes a breach of the Franchise Agreement.
Specifically, Casiola can take several actions, including voiding and terminating the Franchise Agreement. Casiola can then market and transfer the franchisee's rights to another party without compensating the franchisee. Additionally, Casiola can hold the franchisee and their owners jointly and severally liable for all payments, fees, monetary obligations, and charges owed to Casiola under the Franchise Agreement, Ancillary Agreements, or any other agreements. This includes accelerating all payments and obligations to be immediately due.
Furthermore, Casiola can recover lost revenues, profits, and fees from the franchisee and their owners, including Royalty Fees, Brand Development Fund Fees, Advertising Contributions, and all other fees and expenses that would have been paid throughout the term of the agreement had the breach not occurred. Casiola may calculate these damages using the franchisee's most recent calendar year Gross Sales or, if the business has been open for less than a year, using the average Gross Sales of Casiola businesses across the system during the year of termination. This calculation serves as a form of liquidated damages.