What level of involvement is required from the Managing Owner in the operation of a Casiola Franchised Business?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that, at all times, that the development and operation of the Franchised Business shall be managed, operated, and maintained under the active, continuing management, substantial personal involvement and hands-on supervision, of Franchisee's Managing Owner. The Managing Owner must at all times be actively involved in the operation of the Franchised Business unless Franchisee delegates management functions to an authorized Operating Manager who, among other things, satisfactorily completes Franchisor's Training Program, and otherwise meets the criteria and conditions for qualification as an Operating Manager as designated and determined by Franchisor from time to time. If the Operating Manager is a family member of Franchisee and/or an Owner then the Operating Manager shall also sign and agree to be bound by the terms of the Franchise Owner Agreement and Guaranty.
- (2) Franchisee must, at all times, faithfully, honestly and diligently perform its obligations hereunder, and continuously exert its best efforts to promote and enhance the business of the Franchised Business and the goodwill of the Licensed Marks and the System.
- (3) If, at any time, the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee. Franchisor's appointment of a manager of the Franchised Business does not relieve Franchisee of its obligations or constitute a waiver of Franchisor's right to terminate the Franchise pursuant to Article 16. Franchisor is not liable for any debts, losses, costs or expenses incurred in the operations of the Franchised Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by the Franchised Business while it is managed by Franchisor's appointed manager.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Franchised Business must be managed, operated, and maintained under the active, continuing management, substantial personal involvement, and hands-on supervision of the Franchisee's Managing Owner. The Managing Owner must be actively involved in the operation of the Franchised Business.
However, the Franchisee can delegate management functions to an authorized Operating Manager if the Operating Manager satisfactorily completes Casiola's Training Program and meets the criteria and conditions for qualification as an Operating Manager as designated and determined by Casiola from time to time. If the Operating Manager is a family member of Franchisee and/or an Owner, then the Operating Manager must also sign and agree to be bound by the terms of the Franchise Owner Agreement and Guaranty.
If the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Casiola is authorized, but not required, to immediately appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee. However, Casiola's appointment of a manager of the Franchised Business does not relieve Franchisee of its obligations or constitute a waiver of Casiola's right to terminate the Franchise pursuant to Article 16. Casiola is not liable for any debts, losses, costs, or expenses incurred in the operations of the Franchised Business or to any creditor of Franchisee for any products, materials, supplies, or services purchased by the Franchised Business while it is managed by Casiola's appointed manager.