Which items in the Casiola Disclosure Document relate to the franchisee's fee obligations?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
rized and designated by us.
Note 4: Franchisee Directed Local Marketing – On an on-going monthly basis, you must spend not less than $450 per month for your first Territory plus an additional $450 per month for each Additional Territory on the local marketing of your Casiola Business within your Operating Market and in accordance with our standards and specifications. We may require that this fee be paid directly to us and that we allocate and spend these funds on behalf of your Casiola Business.
Note 5: Local and Regional Advertising Cooperatives – If two or more Casiola Businesses are operating within a geographic area, region, or market designated by us (a "designated market"), we reserve the right to establish and require your participation in a local or regional advertising cooperative within the designated market. If an advertising cooperative is established within a designated market that includes your Casiola Business(s), you will be required to participate in the cooperative and make on-going payments to the cooperative in such amounts and subject to such caps as established by the cooperative members. We anticipate that each Casiola Business franchisee will have one vote for each Casiola Business located within the cooperative market and those cooperative decisions shall be made based on approval of a simple majority vote with a quorum of not less than 25% of the designated cooperative members. Contributions to a local or regional cooperative that we designate will count toward satisfaction of your minimum local marketing requirements and shall not exceed the local marketing requirement.
Note 6: Technology Fee – The continuing monthly technology fee is an administrative fee and is not associated with any particular service but is used, at our discretion, to defray some of our costs related to system website and intranet (the "Technology Fee").
Note 7: Customer Services and Refunds – This fee will be based on the costs incurred by us, including refunds and/or credits that we may undertake on behalf of a customer that was not satisfied with the services or products provided by the Franchised Business. You must guarantee your services to your customers. If we determine that your customer is entitled to reimbursement of fees paid to you or an obligation that you assumed, we may reimburse your customer directly. You must reimburse us for the amounts that we reimburse your customer. You must also participate in any warranty insurance programs that we designate.
Note 8: Non-Compliance Fee: Customer Reviews – You must subscribe to and participate in the customer review tracking and reputation management services and providers that we designate. If your customer review or customer satisfaction ratings, as measured across the review platforms that we designate, goes below 4.0 stars out of 5 stars or a net promoter score of less that 50, you must pay to us a non-compliance fee of between $250 to $750 per month for each month of non-compliance. If a condition of non-compliance occurs for more than three months, then we may increase this non-compliance fee to a monthly fee of not more than $750 per month.
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD page 24)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, Item 6 outlines several ongoing fees franchisees may be required to pay. These include fees for local marketing, advertising cooperatives, technology, and customer service-related costs.
Specifically, franchisees must spend a minimum of $450 per month for their first territory and an additional $450 per month for each additional territory on local marketing. Casiola may require that these funds be paid directly to them to manage on the franchisee's behalf. If a local or regional advertising cooperative is established, franchisees must participate and make ongoing payments as determined by the cooperative members. Each franchisee gets one vote per Casiola Business within the cooperative market, and decisions require a simple majority vote with a quorum of at least 25% of the members. Contributions to these cooperatives can count toward the minimum local marketing requirements, but cannot exceed them.
Additionally, franchisees will be charged a continuing monthly technology fee, which is an administrative fee used to cover Casiola's costs related to the system website and intranet. Franchisees are also responsible for customer service and refund costs, which are based on expenses incurred by Casiola for customer refunds or credits due to dissatisfaction with the franchisee's services or products. Casiola may reimburse customers directly and then require reimbursement from the franchisee. Franchisees must also participate in any warranty insurance programs designated by Casiola.
Finally, the FDD states that if a franchisee's monthly customer satisfaction ratings fall below 4.0 stars out of 5 stars or a net promoter score of 50, the franchisee must pay a non-compliance fee of between $250 to $750 per month for each month of non-compliance. If non-compliance continues for more than three months, Casiola may increase the fee to a maximum of $750 per month.