If Casiola appoints a manager for the Franchised Business, does this constitute a waiver of Casiola's right to terminate the Casiola Franchise pursuant to Article 16?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisor's appointment of a manager for Franchisee's Casiola Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if Casiola appoints a manager to oversee a franchisee's Casiola business, this action does not waive Casiola's right to terminate the franchise agreement under Article 16. This condition applies specifically in situations where the franchisee, or the managing owner of a corporate franchisee, dies or becomes permanently disabled.
This means that even if Casiola steps in to manage the business temporarily, the franchisee remains responsible for fulfilling all obligations outlined in the franchise agreement. Casiola's decision to manage the business does not prevent them from later terminating the agreement if other violations occur.
This provision protects Casiola's interests by ensuring they can maintain control over the brand and operational standards, even during unforeseen circumstances like the franchisee's death or disability, without sacrificing their right to terminate the agreement for cause. The franchisee is responsible for the costs associated with the manager appointed by Casiola. Casiola also has the right to charge a reasonable fee for such management services and may cease to provide management services at any time.