What is included in the 'Cancellation Fee Margin' for a Casiola outlet?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (e) Cancellation Fee Margin means the portion of guest paid cancellation fees paid to an Outlet and net of the portion of the cancellation fee paid to a property owner.
| Combined Fees and Select Data for Orlando 1, 2, and 31 | ||
|---|---|---|
| 2022 Calendar Year | 2023 Calendar Year | |
| Total | Total | |
| Damage Waiver Fees | $574,165 | $544,494 |
| Cancellation Fee Margin2 | $42,716 | $17,568 |
| Accommodation Fee Margin2 | $32,941 | $50,485 |
| Ancillary Third Party Service Fee Margin2 | $446,929 | $196,862 |
| 2Royalty Fees: We do not charge Royalty Fees on sales and revenue earned by an Outlet for | ||
| Cancellation Fees, Accommodation Fees for early check-in / late check-out, or Ancillary Third | ||
| Party Service Fees. |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 39–45)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Cancellation Fee Margin is defined as the portion of guest-paid cancellation fees that are paid to a Casiola outlet, after subtracting the portion of the cancellation fee paid to the property owner.
For example, the combined Cancellation Fee Margin for Orlando 1, 2, and 3 was $42,716 in the 2022 calendar year and $17,568 in the 2023 calendar year. Casiola does not charge royalty fees on revenue earned from cancellation fees.
Understanding this margin is important for prospective franchisees as it represents a revenue stream that is not subject to royalty fees, potentially increasing profitability. However, the actual amount can vary significantly depending on the number of cancellations and the agreements with property owners.