What ownership requirements must be met to be considered an 'Owner' of a Casiola franchise?

According to Casiola's 2024 Franchise Disclosure Document, the term 'Owner' has specific criteria. If the franchisee is a corporation, an 'Owner' includes the officers and directors who hold an ownership interest. It also encompasses the managing member or manager if the franchisee is a limited liability company.

Furthermore, any individual or entity holding a 5% or greater direct or indirect ownership interest in the franchisee, or in any entity controlling the franchisee, is considered an 'Owner'. The definition also explicitly includes the 'Managing Owner(s).' This broad definition ensures that all individuals with significant control or financial stake in the Casiola franchise are subject to the obligations and responsibilities outlined in the franchise agreement.

This definition is important because the FDD states that 'Franchisee and each Owner shall remain liable for all obligations to Franchisor set forth in this Agreement.' This means that all individuals meeting the definition of 'Owner' are held responsible for the franchisee's obligations to Casiola. Prospective franchisees should carefully consider the implications of this definition when structuring their business and determining ownership percentages, as it directly impacts personal liability and responsibilities to the franchisor.