If Casiola appoints a manager, is Casiola liable for debts incurred by the Casiola Franchised Business?

According to Casiola's 2024 Franchise Disclosure Document, Casiola is not liable for any debts, losses, costs, or expenses incurred in the operations of the Franchised Business, even if a manager is appointed by Casiola. This protection extends to any creditor of the franchisee for products, materials, supplies, or services purchased by the Casiola Business. This condition applies at all times, including when the Franchised Business is being managed by a manager appointed by Casiola.

This means that as a Casiola franchisee, you remain solely responsible for all financial obligations of your business, regardless of whether Casiola steps in to manage the operations temporarily. This is particularly relevant in situations where the franchisee dies or becomes permanently disabled, and Casiola appoints a manager to maintain business operations until a suitable replacement is found.

Casiola has the right to charge a reasonable fee for these management services and may discontinue them at any time. This arrangement protects Casiola from assuming financial liabilities for individual franchise operations, which is a common practice in franchising. It is important for prospective franchisees to understand that even with Casiola's intervention in management, the financial responsibility for the business remains with the franchisee or their estate.