If Casiola appoints a manager to operate the Franchised Business, does this relieve the Franchisee of their obligations?
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.
At all times, including while Franchisee's Casiola Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Casiola Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Casiola Business.
Franchisor has the right to charge a reasonable fee for such management services and may cease to provide management services at any time.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the appointment of a manager by Casiola to operate the Franchised Business does not relieve the franchisee of their obligations under the Franchise Agreement. This holds true even if the manager is appointed due to the death or permanent disability of the franchisee. The franchisee remains responsible for fulfilling all obligations outlined in the agreement, including those specified in Article 14.D. The appointment of a manager also does not constitute a waiver of Casiola's right to terminate the agreement as per Article 16.
This means that even while a manager appointed by Casiola is running the day-to-day operations, the franchisee is still accountable for ensuring the business meets all contractual requirements. This includes financial obligations, adherence to operational standards, and any other responsibilities detailed in the Franchise Agreement. The franchisee cannot simply rely on the appointed manager to handle everything and assume they are absolved of their duties.
Furthermore, Casiola is not liable for any debts, losses, costs, or expenses incurred during the period when the appointed manager is in charge. The franchisee remains responsible for all financial aspects of the business, including debts to creditors for products, materials, supplies, or services purchased by the business. Casiola also retains the right to charge a reasonable fee for providing these management services and can cease providing these services at any time.
This arrangement carries significant implications for a prospective Casiola franchisee. Even in situations where Casiola steps in to manage the business, the franchisee's financial and contractual obligations remain in full effect. Franchisees need to understand that they are ultimately responsible for the success and compliance of their Casiola Business, regardless of who is managing the daily operations.