Is Casiola required to approve alternative suppliers proposed by franchisees?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
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
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola is not required to approve alternative suppliers proposed by franchisees. Casiola retains the exclusive right to determine the level of evaluation conducted for suppliers, using their Reasonable Business Judgment.
This means that as a Casiola franchisee, you cannot assume that Casiola will approve suppliers you find independently. Casiola has the final say in which suppliers are approved.
This policy allows Casiola to maintain consistency and quality control across all franchise locations. However, it also limits the franchisee's autonomy in choosing suppliers, potentially impacting costs and availability. Franchisees are obligated to use designated suppliers for 'System Supplies,' which include a wide array of items from booking platforms to management systems, as specified in the Operations Manual.