What is the Initial Training Fee that a Casiola franchisee must pay?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
se Fee") of $35,000 for an Operating Market comprising a single Territory. If Franchisee's Operating Market is supplemented with Additional Territories, the Initial Franchise Fee shall be increased and shall be the amount set forth in Schedule 2 of this Agreement. The Initial Franchise Fee is fully earned by Franchisor upon execution of this Agreement and is not refundable. In addition to the Initial Franchise Fee, at the time of signing the Franchise Agreement Franchisee shall pay to Franchisor an Initial Training Fee in the amount of $7,500.
5.B. ROYALTY FEES AND SUPPLEMENTAL ROYALTY FEES
Royalty Fees: Throughout the Term of this Agreement, Franchisee shall pay to Franchisor continuing nonrefundable royalty fees (individually and collectively, the "Royalty Fee") in an amount equal to 4.9% (the "Royalty Rate") of Gross Rental Revenues+, except that the Royalty Rate shall be 8% of Gross Rental Revenues+ for Out of Territory Customers. Royalty Fees shall be paid instantly in each and every instance that Gross Rental Revenues+, Gross Sales, and/or any other fees are received and/or paid in connection with the Franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, franchisees must pay an Initial Training Fee of $7,500 at the time of signing the Franchise Agreement. This fee is in addition to the Initial Franchise Fee of $35,000 for an Operating Market comprising a single Territory. The Initial Franchise Fee will increase if the Operating Market is supplemented with Additional Territories, as detailed in Schedule 2 of the Agreement. The Initial Franchise Fee is considered fully earned by Casiola upon the execution of the agreement and is non-refundable.
Furthermore, if a franchisee wants more than four individuals to attend the initial training program, they must obtain Casiola's approval and pay an additional fee of $500 per additional person per day. This "Additional Initial Training Fee" must be prepaid upon submission of an invoice from Casiola. The Managing Owner and one manager of the franchise must complete the initial training program within 20 days of the earlier of the Scheduled Opening Date or the Actual Opening Date.
This initial training is crucial for the Managing Owner and designated manager to properly operate the Casiola business. Franchisees are also responsible for the ongoing training of their employees to maintain Casiola's standards. The structure and content of the Training Program are determined by Casiola and may be offered in phases. Franchisees, or their Managing Owner and Manager, must also attend refresher and system-wide training courses at their own expense as required by Casiola.