What is the Operations Non-Compliance Fee for a Casiola franchisee for each instance of failing to exclusively use System Supplies or Franchisor-designated suppliers?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
- (4) Franchisee shall, at all times, maintain sufficient working capital to fulfill its obligations under this Agreement.
7.J. REMEDIES FOR NON-COMPLIANCE WITH OPERATIONAL STANDARDS
In addition to all other rights afforded to Franchisor under this Agreement, in connection with any, each, and every violation of any term, provision, and/or operational requirement as set forth in this Article 7 (an "Operations Violation"), within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor an operations non-compliance fee (the "Operations Non-Compliance Fee") in the amount of: (a) $1,000 for each and every instance/event related to an Operations Violation involving the sale of services and/
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, franchisees may incur an Operations Non-Compliance Fee for failing to adhere to operational standards. Specifically, if a franchisee fails to exclusively use System Supplies or Franchisor-designated suppliers, they will be subject to a fee.
For each instance where a Casiola franchisee does not exclusively use System Supplies or Franchisor-designated suppliers, the Operations Non-Compliance Fee is $1,000. This fee is levied for each event or instance of non-compliance. The franchisee is required to pay this fee to Casiola within 14 days of receiving an invoice from the franchisor.
In addition to the Operations Non-Compliance Fee, the franchisee is also responsible for covering all costs and expenses incurred by Casiola for any inspections, audits, or re-inspections conducted to determine if the franchisee has corrected the Operations Violation. These additional costs must also be paid within 14 days of Casiola's invoice. Casiola retains all other rights and remedies available under the agreement, and all rights and remedies are cumulative.