Are taxes included in the Gross Rental Revenues+ calculation for a Casiola Business?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
"Gross Rental Revenues+" means the total amount of all gross revenues, sales, receipts, and fees paid including, by an end-user customer and/or their agent or intermediary, in connection with the rental, leasing, property management, insuring, servicing, reserving and/or use of a property in connection with the Approved Services and Products and/or that is the subject of and/or benefits from the Approved Services and Products from or derived by you, a customer of your Casiola Business, or any other person or Corporate Entity from business conducted or which started in, on, from or through your Casiola Business and/or your Operating Market, whether such business is conducted in compliance with or in violation of the terms of the Franchise Agreement. Commission+ Fees are not deducted when calculating and determining Gross Rental Revenues+. Gross Rental Revenues+ do not include any taxes that are collected and remitted to the proper taxing authority. Gross Rental Revenues+ do not include Ancillary Third Party Service Fees as designated and determined by Franchisor.
Source: Item 6 — OTHER FEES (FDD pages 12–18)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Gross Rental Revenues+ does not include taxes that are collected and remitted to the proper taxing authority. Gross Rental Revenues+ is the total amount of all gross revenues, sales, receipts, and fees paid including, by an end-user customer and/or their agent or intermediary, in connection with the rental, leasing, property management, insuring, servicing, reserving and/or use of a property in connection with the Approved Services and Products.
This means that when Casiola calculates the royalty fees or any other fees based on Gross Rental Revenues+, the franchisee will not have to include the taxes they collect from customers and remit to the government. This is a benefit to the franchisee, as it lowers the base amount on which fees are calculated, thereby reducing the overall fee amount owed to Casiola.
It is important for prospective Casiola franchisees to understand exactly what constitutes Gross Rental Revenues+ and what is excluded, as this figure is used to calculate royalty fees and other payments to Casiola. Franchisees should consult with a financial advisor to fully understand the implications of this definition and how it will impact their business's profitability.