What are the initial fees for a Casiola franchise (Item 5) and how do they compare to the ongoing monthly fees (Item 6) and the estimated initial investment (Item 7)?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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ITEM 5 INITIAL FEES
Initial Franchise Fee
When you sign a Franchise Agreement you must pay to us a non-refundable initial franchise fee (the "Initial Franchise Fee"). The Initial Franchise Fee is $35,000 for a geographic area that operates as a single territory with approximately 250 to 5,000 potential rentable short-term rental properties located within the geographic territory (a "Territory"). The Initial Franchise Fee is fully earned by us upon payment. The method we use to calculate the Initial Franchise Fee is uniform for all franchises, except, as described below, we offer a veteran's discount, qualified employee discount, and multi-territory discount.
Veteran's Discount
For qualified individuals who were honorably discharged from any branch of the United States Military we offer a 15% discount off of the Initial Franchise Fee for your first Franchise Agreement for your first territory. This discount must be requested at the time of your initial franchise application and requires documented military service and is subject to our approval and agreement to award a franchise.
Qualified Employee Discount
For qualified individuals who have been employed by us or our affiliate for two or more years we offer a 50% discount off of the Initial Franchise Fee for your first Franchise Agreement for your first territory. This discount must be requested at the time of your initial franchise application and is subject to our approval and agreement to award a franchise.
Initial Training Fee
When you sign a Franchise Agreement you must pay to us a non-refundable initial training fee (the "Initial Training Fee") in the amount of $7,500. This fee is an attendance fee for your participation and the participation of up to three additional authorized individuals to attend our initial training program.
Additional Territories and Territory Discounts
Subject to market type, availability, and our discretion, at the time of signing your Franchise Agreement, you may request the right to purchase additional territories (each referred to as an "Additional Territory") to be added to your Operating Market and operated under one Franchise Agreement. Each Additional Territory will be comprised of approximately up to 5,000 potential rentable individual short-term rental properties within a 40 minute drive time from your administrative office. Your first Territory and, if applicable, each Additional Territory is collectively referred to collectively as your "Territories" and, individually, as a "Territory." When purchasing Additional Territories, the following initial franchise fees shall apply:
| Total Territories Purchased | Initial Franchise Fee per Territory | Cumulative Fee |
|---|---|---|
| (Includes First Territory) | ||
| 1 | $35,000 | $35,000 |
| 2 | $32,500 | $65,000 |
| 3 | $30,000 | $90,000 |
| 4 | $28,750 | $115,000 |
| 5 | $28,000 | $140,000 |
Subject to market type, availability, and our discretion, if you elect to enter multiple Franchise Agreements, we will apply the same Territory discounts as set forth in the above table. The discounts are only applicable for Franchise Agreements signed at the same time.
ITEM 6 OTHER FEES
| account by ACH or other means we designate. | |||
| Property Management System (PMS) | Currently $40 per month, per active rental property and subject to increase | Monthly on the first Thursday of each month | Monthly license for property management system. Payable to us or supplier as we designate. |
| Sales CRM | Currently $49 per month, per user and subject to increase | Monthly on the first Thursday of each month | Will be pre-deducted from Gross Sales received by us from customers of the Franchised Business, or, if applicable, automatically deducted from your bank account by ACH or other means we designated. |
| Customer Service and Refunds (Note 7) | Varies under the circumstances | On demand | Applies if, in our discretion, we elect to resolve a complaint or refund request by a customer. |
| Phone System | Currently $30 per month, per line established | Monthly on the first Thursday of each month | Will be pre-deducted from Gross Sales received by us from customers of the Franchised Business, or, if applicable, automatically deducted from your bank account by ACH or other means we designate. |
| Annual Conference Attendance Fee | Our then current conference fee, not greater than $1,000 per person | When invoiced | Applies to conference fee for an annual System conference. |
| Additional Employee Initial Training | Our then current training fee, currently $500 per person per day | When invoiced and prior to training | Our initial pre-opening training is provided at no additional cost for you or your Managing Owner and one designated manager at no additional charge. This fee applies to additional individuals that we authorize to attend training. You are responsible for all fees, wages, and expenses associated with attendance. |
| Supplemental Training | Our then current daily rate per trainer, plus expenses we incur. |
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the initial fees for a single territory franchise include a $35,000 initial franchise fee and a $7,500 initial training fee. These fees are non-refundable and must be paid when signing the Franchise Agreement. Casiola offers discounts on the initial franchise fee for qualified veterans (15% off) and employees (50% off). For multiple territories, the initial franchise fee ranges from $65,000 for two territories to $140,000 for five territories.
In comparison, the ongoing monthly fees include a franchisee-directed local marketing expense of not less than $450 per month for the first territory, plus an additional $450 per month for each additional territory. Other potential ongoing fees include those for local and regional advertising cooperatives, technology, and customer services and refunds. The technology fee is an administrative fee used to defray some of Casiola's costs related to the system website and intranet. The customer services and refunds fee is based on costs incurred by Casiola, including refunds or credits issued to customers dissatisfied with the franchisee's services.
The estimated initial investment for a single territory ranges from $29,500 to $65,750, excluding the initial franchise fee. Including the initial franchise fee, the total estimated initial investment ranges from $64,500 to $100,750. This investment covers various expenses such as equipment ($1,000 - $3,000), computer and software ($1,500 - $3,000), a vehicle ($250 - $4,250), start-up marketing ($1,000), insurance deposits ($1,000 - $3,000), travel for initial training ($1,000 - $3,000), professional fees ($250 - $3,000), licenses and permits ($1,000 - $3,000), and additional funds for three months ($15,000 - $35,000). For multiple territories, the initial investment ranges from $94,500 to $205,750.