What does Payment Non-Compliance include for a Casiola franchise, besides the stated fee?
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, Payment Non-Compliance involves more than just a flat fee. If a Casiola franchisee fails to make payments on time, they will incur a Payment Non-Compliance fee of $150 per occurrence. This fee is due 14 days from the invoice date.
In addition to the $150 fee, the franchisee is also responsible for covering interest, costs, and legal fees associated with the late payment. The interest is calculated at a rate of 18% per annum from the original due date. This interest rate, however, cannot exceed the maximum legal rate allowed by law and may be adjusted to reflect the legal limit.
This policy highlights the importance of timely payments to Casiola. Franchisees should ensure they have systems in place to manage payments effectively to avoid these additional charges. The inclusion of interest, costs, and legal fees could significantly increase the financial burden of late payments beyond the initial $150 fee.