factual

If a local or regional advertising cooperative is established, is a Casiola franchisee required to participate?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

f of your Casiola Business.

Note 5: Local and Regional Advertising Cooperatives – If two or more Casiola Businesses are operating within a geographic area, region, or market designated by us (a "designated market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the designated market. If an advertising cooperative is established within a designated market that includes your Casiola Business(s), you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Casiola Business franchisee will have one vote for each Casiola Business located within the cooperative market and those cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements and shall not exceed the local marketing requirement.

Note 6: Technology Fee – The continuing monthly technology fee is an administrative fee and is not associated with any particular service but is used, at our discretion, to defray some of our costs related to system website and intranet (the "Technology Fee").

Source: Item 6 — OTHER FEES (FDD pages 12–18)

What This Means (2024 FDD)

According to Casiola's 2024 Franchise Disclosure Document, if Casiola establishes a local or regional advertising cooperative within a designated market that includes a franchisee's Casiola business, the franchisee is required to participate in the cooperative. Franchisees must make ongoing payments to the cooperative, with the amounts and caps determined by the cooperative members.

Each Casiola Business franchisee will have one vote for each Casiola Business located within the cooperative market. Cooperative decisions are made based on a simple majority vote, requiring a quorum of at least 25% of the designated cooperative members.

Contributions to a local or regional cooperative that Casiola designates will count toward satisfying the franchisee's minimum local marketing requirements. These contributions will not exceed the local marketing requirement. Casiola franchisees must spend at least $450 per month for their first Territory, plus an additional $450 per month for each Additional Territory, on local marketing.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.