Are the Royalty Fees paid to Casiola refundable?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
Item 5, "Initial fees," Item 5 is supplemented by the addition of the following:
Refund and cancellation provisions will be inapplicable to franchises operating under North Dakota Law, North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17. If franchisor elects to cancel this Franchise Agreement, franchisor will be entitled to a reasonable fee for its evaluation of you and related preparatory work performed and expenses actually incurred.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola Franchise Disclosure Document, royalty fees are generally non-refundable. However, there is an exception for franchises operating under North Dakota law.
Specifically, the FDD states that refund and cancellation provisions will not apply to franchises operating under North Dakota Century Code Annotated Chapter 51-19, Sections 51-19-01 through 51-19-17. This means that if a Casiola franchise is located in North Dakota, the standard refund policies outlined in the Franchise Agreement may not be applicable, and the franchisee's rights regarding refunds could be governed by North Dakota law.
This is an important consideration for prospective Casiola franchisees, particularly those planning to operate in North Dakota. They should consult with a legal professional to understand their rights and obligations under North Dakota law regarding franchise refunds and cancellations. For franchisees outside of North Dakota, the standard terms of the Franchise Agreement will likely apply, meaning royalty fees are non-refundable once paid to Casiola.