What pricing requirements can Casiola designate for franchisees?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Franchisee agrees that Franchisor's commission pricing, commission pricing calculations, fees, Commission Agreement Terms, Rental Agreement terms, and promotion requirements may change from time to time and may vary depending on geography (towns, cities, states, region) and other factors designated by Franchisor including, Franchisor's designation of any local, regional or national promotional campaigns. Franchisee agrees that Franchisor's pricing and promotional requirements may directly or indirectly impact Commission+ Fees, fees and prices charged by Franchisee's Casiola Business and that Franchisor may designate specific pricing to be included in advertisements and promotional materials. Without limitation to the foregoing, Franchisor, in Franchisor's Reasonable Business Judgment, shall exclusively determine and set the prices and fees related to User Network and Processing System Fees and the method by which Commission+ Fees are calculated including, all fees and expenses to be deducted from rental revenue and rental receipts before calculating and determining any Commission+ Fees.
Franchisee agrees that nothing contained in this Article 3.M. shall be deemed a representation by Franchisor that if Franchisee follows Franchisor's pricing, fee, or promotional requirements Franchisee will generate a profit. Franchisee agrees that any pricing, fee and promotional requirements designated by Franchisor may or may not optimize the revenues or profitability of Franchisee's Casiola Business. Franchisee waives any and all claims related to Franchisor's establishment of prices and fees charged at Franchisee's Casiola Business. At all times, Franchisee agrees to inform Franchisor of all prices and fees charged by Franchisee's Casiola Business and to inform Franchisor of any modifications to Franchisee's prices and fees.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola has significant control over pricing and promotional requirements for its franchisees. Casiola may modify commission pricing, commission pricing calculations, fees, Commission Agreement Terms, Rental Agreement terms, and promotion requirements. These changes can occur periodically and may differ based on geography, such as towns, cities, states, or regions, and other factors determined by Casiola, including local, regional, or national promotional campaigns.
These pricing and promotional requirements can directly or indirectly affect the Commission+ Fees, fees, and prices charged by a franchisee's Casiola Business. Casiola can also specify the pricing to be used in advertisements and promotional materials. Casiola has the exclusive authority to determine and set prices and fees related to User Network and Processing System Fees, as well as the method for calculating Commission+ Fees, including all deductions from rental revenue and receipts before calculating these fees.
It is important to note that Casiola does not guarantee profitability even if a franchisee adheres to the designated pricing, fee, or promotional requirements. The franchisor's pricing, fee, and promotional requirements may or may not optimize the revenues or profitability of the franchisee's Casiola Business. The franchisee waives any claims related to Casiola's establishment of prices and fees. Franchisees are required to keep Casiola informed of all prices and fees charged by their Casiola Business and any modifications made to those prices and fees.