Does Casiola require franchisees to meet specific pricing policies and procedures for Ancillary Third Party Service Fees?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- "Ancillary Third Party Service Fees" means fees paid to a Casiola Business as reimbursement to the Casiola Business for services, parts, and supplies provided to a customer of the Casiola Business by an Ancillary Third Party Service Provider.
At all times Franchisor possesses full discretion and authority, in Franchisor's Reasonable Business Judgment, to designate and determine what constitutes and qualifies as Ancillary Third Party Service Fees.
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 franchisees are required to adhere to the pricing policies and procedures set forth by the franchisor. While the franchisee is responsible for informing Casiola of all prices and fees charged by their Casiola Business, the franchisor ultimately determines the prices and fees related to User Network and Processing System Fees. These fees are defined as those charged to end-user guests and property owners for accessing approved services and products, including booking and payment processing fees.
Casiola retains full discretion to designate what qualifies as Ancillary Third Party Service Fees, which are reimbursements to the Casiola Business for services provided by Ancillary Third Party Service Providers. The franchisor's commission pricing, calculations, fees, Commission Agreement Terms, Rental Agreement terms, and promotion requirements may change and vary based on geography and other factors, including promotional campaigns. These pricing and promotional requirements may directly or indirectly impact fees and prices charged by the franchisee's Casiola Business, and Casiola may designate specific pricing for advertisements and promotional materials.
While franchisees must follow Casiola's pricing, fee, and promotional requirements, the FDD states that there is no guarantee of profit. Casiola's pricing and fee requirements may or may not optimize the revenues or profitability of the franchisee's business. The franchisee waives any claims related to Casiola's establishment of prices and fees charged at the franchisee's Casiola Business. This means that franchisees bear the risk of these pricing strategies and must still inform Casiola of all prices and fees charged by their business, including any modifications.