Does Casiola periodically approve suppliers and distributors of equipment, materials, supplies, products, and service vehicles?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (5) Franchisor reserves the right to designate, from time to time, a single supplier and/or distributor for any services, products, equipment, supplies, or materials including, but not limited to, the System Supplies and Service Vehicles and to require Franchisee to use such a designated supplier exclusively, which exclusive designated supplier and/or distributor may be Franchisor and/or Franchisor's affiliates.
Franchisor and its affiliates may receive payments from suppliers and/or distributors on account of such supplier's or distributor's dealings with Franchisee and other franchisees of the System and that Franchisor may use all amounts so received without restriction and for any purpose, including Franchisor's profit;
- (6) If Franchisee proposes or requests that Franchisor consider the approval of products, services, equipment, supplies, suppliers and/or distributors for use in the Franchised Business where such products, services, equipment, supplies, suppliers and/or distributors are not, presently, at the time of Franchisee's request, approved for use in the System, Franchisee: (a) must provide Franchisor with a written request where Franchisee specifies the product, service, equipment, supply, supplier and/or distributor, the reason for Franchisee's request; (b) shall timely submit to Franchisor such information, reports, specifications, and samples as Franchisor, in Franchisor's Reasonable Business Judgment requests; and (c) shall pay to Franchisor a supplier evaluation fee per requested product, service, equipment, supply, supplier and/or distributor to be considered including, but not limited to, the supplier evaluation fees that Franchisor, in Franchisor's Reasonable Business Judgment, establishes and assesses based on, among other things, the administrative costs and time associated with evaluating, assessing and testing the proposed product, service, equipment, supply, supplier and/or distributor including, but not limited to Franchisor's internal employees and independent third parties engaged and/or retained by Franchisor for evaluation and testing.
The foregoing fees and payments shall be paid by Franchisee to Franchisor within 14 days of the date of Franchisor's invoice.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola reserves the right to designate single suppliers or distributors for services, products, equipment, supplies, or materials, including System Supplies and Service Vehicles. Casiola can require franchisees to exclusively use these designated suppliers, which may include Casiola itself or its affiliates. This means Casiola has the authority to determine where franchisees must source essential items for their business.
If a franchisee wishes to use a product, service, equipment, supply, supplier, or distributor not already approved by Casiola, the franchisee must submit a written request to Casiola. This request must detail the reason for the proposed alternative. The franchisee is also responsible for providing any information, reports, specifications, and samples that Casiola requests for evaluation.
Furthermore, the franchisee must pay a supplier evaluation fee for each requested product, service, equipment, supply, supplier, or distributor under consideration. This fee covers the administrative costs and time associated with evaluating and testing the proposed item or supplier, including the costs of internal employees and any independent third parties engaged by Casiola for the evaluation. These fees are due within 14 days of the invoice date from Casiola. This process ensures that Casiola maintains control over the quality and standards of products and services used within its franchise system, while also allowing franchisees to suggest alternatives under specific conditions and with associated costs.