What statements and reports must a Casiola franchisee submit to the Advertising Cooperative and Franchisor?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (6) Franchisee shall submit to the Advertising Cooperative and to Franchisor such statements and reports as may be required by the Advertising Cooperative and approved by Franchisor. All contributions to the Advertising Cooperative shall be maintained and administered in accordance with the documents governing the Advertising Cooperative. The Advertising Cooperative shall be operated solely for the purpose of collection and expenditure of the Advertising Cooperative's fees for the purpose set forth in this Article 9.C.;
- (7) No marketing materials, plans, or media may be used by the Advertising Cooperative or its members without the prior written approval of Franchisor;
- (8) Casiola Businesses owned by Franchisor and/or Franchisor's affiliates that are located within the geographic area of the designated Advertising Cooperative are not required to make contributions to the Advertising Cooperative; and
- (9) The Advertising Cooperative must comply with the rules and regulations established by Franchisor in the Operations Manual which may be modified by Franchisor from time to time.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to the 2024 Casiola FDD, franchisees must submit statements and reports to both the Advertising Cooperative and the Franchisor as required by the Advertising Cooperative and approved by the Franchisor. The purpose of the Advertising Cooperative is to collect and spend fees for marketing. All activities of the Advertising Cooperative are subject to the Franchisor's approval, including marketing materials, plans, and media.
Franchisees are required to participate in and contribute to the Advertising Cooperative if their Casiola Business or Operating Market is located within the designated geographic area. The amount of financial contributions is determined by the Advertising Cooperative. However, these contributions count toward the franchisee's minimum local marketing obligations as outlined in Article 9.B of the Franchise Agreement.
Casiola retains significant control over the Advertising Cooperative, including the right to establish organizational requirements and voting provisions. The Franchisor also has the right to approve or reject any advertising related to the Franchised Business. Casiola Businesses owned by the Franchisor or its affiliates within the Advertising Cooperative's area are not required to contribute to the cooperative.