When is the Casiola Optional Owner Growth Property Commission fee due?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| Type of Fee (Note 1) | Amount | Due Date | Remarks |
|---|---|---|---|
| Interim Management Service | $500 per day plus actual costs incurred by us | As invoiced | Payable if we elect to manage the Franchised Business due to a failure by you to have the Franchised Business managed by an authorized Managing Owner or Manager. |
| Optional Owner Growth Property Commission | $1,500 per contract for properties with a total annual revenue up to $40,000; $2,500 per contract for properties with total annual revenues between $40,000 and $80,000; $3,500 per contract for properties with total annual revenue exceeding $80,000. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Optional Owner Growth Property Commission is due 'as invoiced' and must be paid within 30 days of signing. This fee is charged when a franchisee requests Casiola's optional service of signing homeowner contracts on their behalf.
The amount of the commission varies based on the total annual revenue of the properties under contract. For properties with total annual revenue up to $40,000, the fee is $1,500 per contract. If the total annual revenues are between $40,000 and $80,000, the fee increases to $2,500 per contract. For properties exceeding $80,000 in total annual revenue, the commission is $3,500 per contract.
This fee structure means that franchisees will incur higher costs for securing contracts with more valuable properties. It's important for prospective franchisees to factor these commission costs into their business plans and consider how frequently they anticipate using Casiola's assistance in signing homeowner contracts. Understanding the revenue potential of properties in their target market will help franchisees estimate these potential commission expenses.