What is included in the definition of 'Gross Rental Revenues+' for a Casiola Business?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
"Gross Rental Revenues+" means the total amount of all gross revenues, sales, receipts, and fees paid including, by an end-user customer and/or their agent or intermediary, in connection with the rental, leasing, property management, insuring, servicing, reserving and/or use of a property in connection with the Approved Services and Products and/or that is the subject of and/or benefits from the Approved Services and Products from or derived by you, a customer of your Casiola Business, or any other person or Corporate Entity from business conducted or which started in, on, from or through your Casiola Business and/or your Operating Market, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Commission+ Fees are not deducted when calculating and determining Gross Rental Revenues+. Gross Rental Revenues+ do not include any taxes that are collected and remitted to the proper taxing authority. Gross Rental Revenues+ do not include Ancillary Third Party Service Fees as designated and determined by Franchisor.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
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, sales, receipts, and fees paid by an end-user customer (or their agent/intermediary). This includes payments related to the rental, leasing, property management, insuring, servicing, reserving, and/or use of a property in connection with approved services and products. This definition applies whether these revenues are received by the franchisee, a customer, or any other entity from business conducted through the Casiola Business or its Operating Market.
The definition of Gross Rental Revenues+ is comprehensive, covering virtually all income streams associated with the core services offered by a Casiola franchise. It specifically states that Commission+ Fees are not deducted when calculating Gross Rental Revenues+. However, taxes collected and remitted to the proper taxing authority, as well as Ancillary Third Party Service Fees as designated by Casiola, are excluded from Gross Rental Revenues+.
For a prospective franchisee, this definition is crucial because the royalty fee owed to Casiola is calculated as a percentage of Gross Rental Revenues+. Understanding what constitutes Gross Rental Revenues+ ensures accurate royalty payments and financial reporting. The exclusion of taxes and Ancillary Third Party Service Fees is beneficial, as it prevents franchisees from paying royalties on pass-through funds. Casiola also has the right to pre-deduct royalty fees from the Gross Rental Revenues+ received by the business.