When is the Payment Non-Compliance Fee charged to a Casiola franchisee?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
$80,000 if Franchisee requests Franchisor to sign homeowner contracts on Franchisee's behalf.
5.E. PAYMENT NON-COMPLIANCE FEES AND CHARGES
In addition to all other rights afforded to Franchisor under this Agreement, in connection with each and every fee, charge, and/or obligation payable and due from Franchisee to Franchisor under the terms of this
Agreement including, but not limited to, this Article 5, within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor: (a) a payment non-compliance fee in the amount of $150 (the "Payment Non-Compliance Fee") for each and every instance where a fee, charge, and/or obligation payable to Franchisor under this Agreement is not paid in full when due; plus (b) interest on all unpaid fees, sums, and/or obligations payable and due from Franchisee to Franchisor at an interest rate equal to the lesser of either 18% per annum, or the maximum interest rate allowed by applicable law and with interest accruing on the date when such fee, sum, or obligation was due; plus (c) all costs incurred by Franchisor in the collection of such unpaid and past due obligations including, but not limited to, reasonable attorney's fees, costs, and expenses. Additionally, if Franchisee's bank account possesses insufficient funds and/or fails to process a payment related to any fee due to Franchisor, Franchisor may charge the greater of either (i) 5% of the amount; (ii) $50 for each instance; or (iii) the maximum amount allowed by law. The foregoing does not constitute Franchisor's agreement to accept payments after they are due or a commitment by Franchisor to extend credit t
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, a Payment Non-Compliance Fee of $150 is charged to a franchisee for each instance a fee, charge, and/or obligation payable to Casiola under the Franchise Agreement is not paid in full when due. This fee is in addition to other potential charges.
In addition to the Payment Non-Compliance Fee, Casiola may also charge interest on all unpaid fees, sums, and/or obligations at a rate of the lesser of 18% per annum or the maximum interest rate allowed by applicable law. This interest accrues from the date the payment was originally due. Franchisees are also responsible for covering all costs incurred by Casiola in the collection of unpaid obligations, including reasonable attorney's fees, costs, and expenses.
Furthermore, if a franchisee's bank account has insufficient funds or fails to process a payment related to any fee due to Casiola, Casiola may charge an additional fee. This fee will be the greater of either 5% of the amount due or $50 for each instance, or the maximum amount allowed by law. It is important to note that these measures do not obligate Casiola to accept late payments or extend credit to the franchisee.