What does the payment non-compliance fee for a Casiola franchise cover, besides the penalty?
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. |
| Interest | 18% per annum from due date | On demand | Payable on all overdue amounts, fees, charges, and payments due to us under the Franchise Agreement. Interest rate cannot exceed legal rate allowed by law and may be adjusted to reflect same. |
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 covers more than just the initial penalty. Specifically, if a franchisee fails to make timely payments of fees due to Casiola under the Franchise Agreement, they will be liable for a $150 penalty per occurrence.
In addition to this $150 fee, the franchisee is also responsible for covering interest, costs, and legal fees associated with the late payment. The interest is set at 18% per annum from the date the payment was originally due.
This means that a Casiola franchisee needs to ensure all payments are made on time to avoid these additional charges, which can significantly increase the amount owed beyond the original fee. The due date for the initial $150 non-compliance fee is 14 days from the invoice date.