If multiple owners sign the Casiola agreement, how does the agreement apply to them?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
WHEREAS, you acknowledge that this Agreement will apply to you individually, jointly and severally with all others who sign this Agreement (including if this Agreement is signed in counterparts or electronically among other Owners);
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, if multiple owners sign the Franchise Owner Agreement, the agreement applies to each of them individually, jointly, and severally. This means that each owner is fully responsible for all obligations under the agreement, regardless of the actions or inactions of the other owners.
This has significant implications for prospective Casiola franchisees. If one owner fails to meet their obligations, Casiola can pursue any or all of the other owners for the full amount owed or for complete performance. This could include financial obligations, compliance with operational standards, or adherence to non-compete clauses. Each owner is essentially guaranteeing the performance of the others.
This arrangement is common in franchising, as it provides the franchisor with added security and recourse in case of default. However, it also creates a significant risk for individual owners, who could be held liable for the debts or missteps of their co-owners. Prospective franchisees should carefully consider the implications of joint and several liability and ensure they have a strong working relationship with their co-owners before signing the agreement. It is advisable to seek legal counsel to fully understand the risks and obligations involved.