What are the required actions for a Casiola franchisee upon discovering a breach of the Confidentiality Agreement?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
lo contendere to a felony crime;
- (n) Franchisee and/or an Owner of Franchisee engages in intentionally dishonest and/or unethical conduct that, in Franchisor's Reasonable Business Judgment, results in embarrassment to Franchisor, the System, the Licensed Marks, Casiola Businesses, the Franchised Business, and/or the reputation of the Casiola brand;
- (o) Franchisee fails to complete, to Franchisor's reasonable satisfaction, the Training Program and/or supplemental training programs designated by Franchisor;
- (p) Franchisee fails, upon receiving actual or constructive notice, to: (1) immediately notify Franchisor of any known breach of the Confidentiality Agreement by any person or entity; (2) immediately notify Franchisor of facts and information that would cause a reasonable person to believe that a person or entity violated the Confidentiality Agreement and/or is in the process of violating the Confidentiality Agreement; and (3) take reasonable steps including ,notice to Franchisor and Franchisee's consultation with Franchisee's legal counsel, to prevent any person or entity from violating the terms of the Confidentiality Agreement and/or otherwise publicly disseminating Confidential Information;
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, if a franchisee receives notice of a breach, they must take specific actions. The franchisee must immediately notify Casiola of any known breach of the Confidentiality Agreement by any person or entity. They must also immediately inform Casiola of any facts and information that would cause a reasonable person to believe that a person or entity violated the Confidentiality Agreement and/or is in the process of violating it.
In addition to notifying Casiola, the franchisee is required to take reasonable steps to prevent any person or entity from violating the terms of the Confidentiality Agreement or publicly disseminating Confidential Information. These steps include notifying Casiola and consulting with the franchisee's legal counsel.
Failure to comply with these notification and prevention measures constitutes a default of the Franchise Agreement. If the franchisee does not address the failure to comply within 10 calendar days of written notice from Casiola, the agreement can be terminated.