How long can a Casiola waiver or deferral of Brand Development Fund or Advertising Cooperative obligations last?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
9.E. WAIVERS OR DEFERRALS
On written request from Franchisee with reasons supporting such request, Franchisor may, at Franchisor's sole discretion and on conditions Franchisor deems appropriate, temporarily waive or defer the obligations of Franchisee under the Brand Development Fund and/or, if applicable, Advertising Cooperative. In no event shall such waiver or deferral extend beyond six months. However, at the end of any waiver or deferral period, Franchisee may resubmit a request for waiver or deferral of its obligations under the Brand Development Fund and/or, if applicable, Advertising Cooperative. Franchisor shall not be under any obligation to grant any waiver or deferral. Franchisor may reject Franchisee's request for a waiver or deferral based on any reason or no reason at all and, nevertheless grant the request of another system franchisee.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, a franchisee can request a temporary waiver or deferral of their obligations to the Brand Development Fund and/or Advertising Cooperative. This request must be made in writing and include supporting reasons. However, the decision to grant such a waiver or deferral rests solely with Casiola, and they may impose conditions as they see fit.
Importantly, any waiver or deferral granted by Casiola cannot extend beyond six months. After this period, a franchisee can resubmit another request for a waiver or deferral. Casiola is under no obligation to approve any request and can reject it for any reason, or even grant a request to one franchisee while denying it to another.
This discretionary power held by Casiola highlights a potential risk for franchisees. While the option for a waiver or deferral exists, its availability is not guaranteed and depends entirely on Casiola's assessment of the situation. Prospective franchisees should carefully consider this when evaluating the financial obligations associated with the Brand Development Fund and Advertising Cooperative.