How do the Monthly Minimum Royalty Fee Requirements for a Casiola franchise change during a Renewal Term?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
During any Renewal Term, the Monthly Minimum Royalty Fee Requirement shall be not less than the Monthly Minimum Royalty Fee Requirement's applicable during the last calendar year of the initial Term and shall be subject to increase as determined by Franchisor provided that within each calendar year of any Renewal Term Franchisor shall not increase the Monthly Minimum Royalty Fee Requirement by more than 10% on an annual basis.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Monthly Minimum Royalty Fee requirements are subject to change during any Renewal Term. Specifically, the minimum monthly royalty fee will not be less than what was applicable during the last calendar year of the initial term.
However, Casiola retains the right to increase this Monthly Minimum Royalty Fee Requirement. There is a condition on how much Casiola can increase the fee.
Within each calendar year of any Renewal Term, Casiola will not increase the Monthly Minimum Royalty Fee Requirement by more than 10% on an annual basis. This provides some predictability for the franchisee, capping the potential annual increase.