What is included in the calculation of Gross Rental Revenues+ for a Casiola business?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (j) Gross Rental Revenues+ means the total amount of all gross revenues, receipts, sales, and fees paid by an enduser customer and/or their agent or intermediary in connection with the rental, leasing, and/or use of a short-term rental property in connection with the Approved Services and Products. Although Commission Fees are typically calculated as a percentage of Gross Rental Revenues+, Commission Fees are not pre-deducted when calculating and determining Gross Rental Revenues+. Gross Rental Revenues+ are not the equivalent of the Gross Sales of a Casiola Business. A significant portion of Gross Rental Revenues+ less Commission Fees represents compensation and funds payable and due to the underlying property owners of each respective short-term rental property.
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–45)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Gross Rental Revenues+ is defined as the total of all gross revenues, receipts, sales, and fees paid by an end-user customer (or their agent/intermediary). These payments must be directly related to the rental, leasing, or use of a short-term rental property in connection with Casiola's approved services and products.
It's important to note that while Casiola calculates its commission fees as a percentage of Gross Rental Revenues+, these commission fees are NOT deducted when determining the Gross Rental Revenues+ figure. This means the Gross Rental Revenues+ represents the total revenue generated before Casiola takes its cut.
The FDD is clear that Gross Rental Revenues+ is not the same as the Gross Sales of a Casiola Business. A significant portion of the Gross Rental Revenues+, after deducting Casiola's commission fees, is actually compensation and funds that are payable to the property owners of the short-term rental properties managed by the Casiola business. This distinction is crucial for prospective franchisees to understand, as it clarifies that a large portion of the revenue collected is passed through to property owners.