When is the Payment Non-Compliance fee due for a Casiola franchise?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
| Reporting Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely submit Royalty and Activity Reports, and other reports and financial statements as required under Franchise Agreement. |
| Operations Non-Compliance | $500 to $1,000 per occurrence | 14 days of invoice | Payable for failure to comply with operational standards as required under Franchise Agreement, plus inspection and re-inspection costs incurred by us. |
| Payment Non-Compliance | $150 per occurrence | 14 days of invoice | Payable for failure to timely pay, when due, a fee or payment due to us under the Franchise Agreement, plus interest, costs and legal fees. |
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, the Payment Non-Compliance fee is due 14 days from the date of the invoice. This fee of $150 per occurrence is charged if a franchisee fails to make a payment to Casiola on time as required by the Franchise Agreement.
In addition to the $150 fee, the franchisee is also responsible for covering interest, costs, and legal fees associated with the late payment. Casiola also charges interest on all overdue amounts at a rate of 18% per annum from the due date.
Franchisees should ensure timely payments to avoid these additional costs. It is a common practice in franchising for franchisors to impose fees and interest on late payments to encourage compliance with the franchise agreement and to cover administrative costs associated with collecting overdue amounts.