What services, parts, and supplies are considered Ancillary Third Party Services for a Casiola Business?

According to Casiola's 2024 Franchise Disclosure Document, Ancillary Third Party Service Fees are defined as reimbursements to the Casiola Business for services, parts, and supplies provided to a customer by a third-party provider. These services must be authorized and designated by Casiola.

Specifically, the FDD mentions examples of ancillary services such as cleaning, plumbing, and handyman services. This means that if a Casiola franchisee uses a third-party cleaning company to prepare a rental property for a guest, the fees paid to that cleaning company could be considered Ancillary Third Party Service Fees. Similarly, if a plumber is called to fix a leak or a handyman is hired for repairs, the costs associated with those services could also fall under this category.

It is important to note that these services must be authorized and designated by Casiola. This implies that there may be a pre-approved list of services or providers that franchisees must use in order for the fees to qualify as Ancillary Third Party Service Fees. This designation is important because, as the FDD states, Gross Rental Revenues+ do not include Ancillary Third Party Service Fees as designated and determined by Franchisor. Therefore, these fees are not subject to royalty payments.

Prospective franchisees should seek clarification from Casiola regarding the specific criteria for designating services, parts, and supplies as Ancillary Third Party Services. Understanding this distinction is crucial for accurately calculating Gross Rental Revenues+ and determining royalty obligations.