Does Casiola periodically approve suppliers and distributors of equipment and supplies?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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.
Upon Franchisee's compliance with the foregoing, within 60 days of the completion of all evaluations, Franchisor shall notify Franchisee of Franchisor's approval or disapproval, which shall be determined by Franchisor in Franchisor's Reasonable Business Judgment.
Under no circumstance shall the foregoing be construed as implying that Franchisor is required to approve alternative suppliers and Franchisor shall exclusively determine, in Franchisor's Reasonable Business Judgment, the level of evaluation to be conducted by Franchisor; and
(7) At all times Franchisee must maintain a physical presence within Franchisee's Operating Market for the purpose of overseeing and managing the Approved Services and Products in accordance with System standards;
(8) The home office or business office from which Franchisee manages Franchisee's Casiola Business must: (a) be located within Franchisee's Operating Market or, (b) be located within a 40 minute drive to Franchisee's Operating Market; and
(9) That, at all times Franchisor, in Franchisor's Reasonable Business Judgement, may designate Franchisor and/or Franchisor's affiliates as the sole and exclusive supplier of technology systems, booking systems, payment processing systems, and other products and/or services offered in connection with the Approved Services and Products and, in doing so, benefit from fees and charges exclusively benefiting Franchisor, Franchisor's affiliates and/or their designees without any compensation and/or benefit to Franchisee.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, Casiola has a process for approving suppliers and distributors not already approved within their system. If a franchisee wants Casiola to consider a new supplier, they must submit a written request detailing the supplier, service, equipment, or supply, and the reason for the request.
Additionally, the franchisee must provide all information, reports, specifications, and samples that Casiola requests. The franchisee is also responsible for paying a supplier evaluation fee for each requested product, service, equipment, supply, supplier, or distributor. This fee covers the administrative costs and time associated with evaluating and testing the proposed supplier, including internal employees and third parties engaged by Casiola for evaluation and testing. Casiola will notify the franchisee of its approval or disapproval within 60 days of completing all evaluations.
Casiola maintains the right to designate a single supplier or distributor for any services, products, equipment, supplies, or materials, including System Supplies and Service Vehicles, and require franchisees to exclusively use this designated supplier. This designated supplier may be Casiola or its affiliates. Casiola and its affiliates may also receive payments from suppliers or distributors based on their dealings with franchisees, and Casiola can use these amounts without restriction, including for profit.
It is important to note that Casiola is not required to approve alternative suppliers and has the sole discretion to determine the level of evaluation conducted. Casiola may also designate itself or its affiliates as the exclusive supplier of technology systems, booking systems, payment processing systems, and other products or services, benefiting from associated fees without compensating the franchisee.