Does Casiola have the right to change the 'Commission Agreement' from time to time?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ranchisee that utilizes or is required to utilize the System and Licensed Marks.
- "Closed Market" means any and all Corporate Account customers that presently, or in the future, are located within Franchisee's Operating Market.
- "Commission Agreement" means the actual and/or form agreement designated and authorized by Franchisor for use by Franchisee in connection with, among other things, offering and providing the Approved Services and Products on behalf of property owner customers of the Franchised Business, the calculation and determination of Commission+ Fees and other charges, fees, and expenses, and other terms and conditions
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola retains the right to modify and amend the terms and conditions of the Commission Agreement. These changes will be made based on Casiola's reasonable business judgment. The Commission Agreement dictates the terms for offering approved services and products, calculating commissions and fees, and other conditions related to the services provided by the Casiola franchise.
This means that as a franchisee, you must adhere to the Commission Agreement that Casiola sets, and that these terms can change over time. These changes can impact how Commission+ Fees are calculated, the fees charged by the franchisee's Casiola business, and the pricing included in advertisements and promotional materials. Casiola has the exclusive right 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 deductions from rental revenue.
The FDD also states that Casiola's commission pricing, calculations, fees, Commission Agreement terms, Rental Agreement terms, and promotion requirements may change and vary based on geography and other factors. These changes may directly or indirectly impact Commission+ Fees and prices charged by the franchisee. Casiola may also designate specific pricing for advertisements and promotional materials.
While Casiola has the right to make these changes, the franchisee agrees to inform Casiola of all prices and fees charged by their Casiola business and any modifications to those prices and fees. It is important to note that the franchisee waives any claims related to Casiola's establishment of prices and fees charged at the franchisee's Casiola Business, and that Casiola does not guarantee profitability even if the franchisee follows their pricing, fee, or promotional requirements.