Does Casiola have the right to make modifications to the approved and designated suppliers?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
anual; (g) Bookings and Management System Data; (h) Know-How; (i) Confidential Information; and (j) Digital Media. All determinations as to the system including components to the system and modifications and replacements thereto shall be determined by Franchisor in Franchisor's Reasonable Business Judgment.
"System Supplies" means the products, equipment and supplies designated by Franchisor as required for use in connection with Franchisee's Casiola Business and the Approved Services and Products. Without limitation to the foregoing, the System Supplies shall include System branded, non-branded and third party branded equipment and supplies designated by Franchisor for use in the day-to-day operations of Franchisee's Casiola Business including, among other things: Franchisor designated rental property booking platforms, online travel agencies, damage waiver fee agreements and terms, rental and travel insurance products, customer support, invoicing, and management systems, and materials, and other products designated by Franchisor in the Operations Manual and/or otherwise in writing and, as may be modified and supplemented by Franchisor from time to time in Franchisor's Reasonable Business Judgment. System Supplies shall further include those products that Franchisor authorizes for sale to customers of Franchisee's Casiola Business.
"System Website" means the web page and pages located on the world wide web at casiola.com domain and shall further include all webpages and subdomains including, those that are franchisee and/or geography specific, that are a part of casiola.com, or as designated by Franchisor being associated with the URL casiola.com and/or Casiola Businesses.
"Technology Fee" shall have the meaning defined and set forth in Article 5.C. of this Agreement.
"Term" means the period of time set forth and defined in Article 2.B. of this Agreement and the applicable Renewal Term, if any, if Franchisee invokes Franchisee's renewal rights in accordance with the terms of this Agreement.
"Territory" refers to a resort, vacation area, market, and/or geographic area, as determined and designated by Franchisor in Franchisor's Reasonable Business Judgment.
"Trade Dress" means the Casiola Business designs, images, marketing materials, packaging, branding and/or branding images which Franchisor authorizes and requires Franchisee to use in connection with the operation of the Franchised Business and as may be revised and further developed by Franchisor from time to time.
"Training Program" shall have the meaning defined and set forth in Article 4.A. of this Agreement.
"Transfer" means and shall include, without limitation, the following, whether voluntary or involuntary, conditional or unconditional, and/or direct or indirect: (a) an assignment, sale, gift, transfer, pledge or subfranchise; (b) the grant of a mortgage, charge, lien or security interest, including, without limitation, the grant of a collateral assignment; (c) a merger, consolidation, exchange of shares or other ownership interests, issuance of additional ownership interests or securities representing or potentially representing ownership interests, or redemption of ownership interests; (d) a sale or exchange of voting interests or securities convertible to voting interests, or an agreement granting the right to exercise or control the exercise of the voting rights of any holder of ownership interests or to control the operations or affairs of
Franchisee; and/or (e) the legal and/or equitable transfer and/or sale of an Owner's interests and/or voting rights in Franchisee.
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 the designated suppliers for System Supplies.
The FDD defines "System Supplies" as the products, equipment, and supplies designated by Casiola as required for use in connection with the Franchisee's Casiola Business and the Approved Services and Products. This includes both System-branded and third-party branded equipment and supplies designated by Casiola for the day-to-day operations. The FDD states that these System Supplies may be modified and supplemented by Casiola from time to time in their Reasonable Business Judgment.
Furthermore, the Operations Manual contains mandatory specifications, standards, and operating procedures that Casiola prescribes for Casiola Businesses, including those related to authorized and designated suppliers. These standards, specifications, and requirements can be supplemented, modified, changed, and/or replaced in the future by Casiola, in its Reasonable Business Judgment. Casiola will provide franchisees with reasonable notice of modifications and changes made to the Operations Manual, allowing a reasonable period of time to implement these changes.
This means that Casiola franchisees must adhere to the suppliers designated by Casiola and that these suppliers can change during the term of the franchise agreement. It is important to note that these changes will be made in Casiola's Reasonable Business Judgment, and franchisees will receive reasonable notice and time to implement these changes.