Is Casiola liable for debts incurred while a manager appointed by them is operating the Franchised Business?

According to Casiola's 2024 Franchise Disclosure Document, Casiola is not liable for any debts, losses, costs, or expenses incurred in the operations of the Franchised Business, even when a manager appointed by Casiola is managing the business. This protection extends to any creditor of the franchisee for products, materials, supplies, or services purchased by the Casiola Business.

This means that even if Casiola steps in to manage a franchisee's business due to the franchisee's death or disability (or that of a managing owner), the franchisee remains solely responsible for all financial obligations. Casiola can also charge a reasonable fee for these management services and may discontinue them at any time.

For a prospective Casiola franchisee, this clause highlights the importance of maintaining adequate insurance and financial planning to cover unforeseen circumstances. It also clarifies that Casiola's involvement in managing a business is strictly an interim measure to maintain operations, not an assumption of financial responsibility. Franchisees should be aware that they are always responsible for the debts, losses, and costs of their Casiola Business.