What is the Operations Non-Compliance Fee for a Casiola franchisee for all other Operations Violations not involving unapproved services/products or system supply violations?
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 violations of operational standards. Specifically, for Operations Violations not involving the sale of unapproved services/products or the failure to exclusively use System Supplies, a franchisee will be assessed a fee of $500 for each instance or event.
This fee is in addition to any other rights Casiola has under the Franchise Agreement. Franchisees are also responsible for covering all costs and expenses incurred by Casiola for inspections, audits, and re-inspections to determine if the Operations Violation has been resolved according to Casiola's standards.
It is important to note that these fees do not represent Casiola's consent to any Operations Violations, and all of Casiola's rights and remedies are cumulative. Franchisees must pay the Operations Non-Compliance Fee within 14 days of the invoice date.