What is the timeframe for a Casiola franchisee to pay the Operations Non-Compliance Fee after receiving an invoice from the Franchisor?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
or expenses incurred in the operations of the Franchised Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by the Franchised Business while it is managed by Franchisor's appointed manager.
- (4) Franchisee shall, at all times, maintain sufficient working capital to fulfill its obligations under this Agreement.
7.J. REMEDIES FOR NON-COMPLIANCE WITH OPERATIONAL STANDARDS
In addition to all other rights afforded to Franchisor under this Agreement, in connection with any, each, and every violation of any term, provision, and/or operational requirement as set forth in this Article 7 (an "Operations Violation"), within 14 days of Franchisor's invoice, Franchisee shall pay to Franchisor an operations non-compliance fee (the "Operations Non-Compliance Fee") in the amount of: (a) $1,000 for each and every instance/event related to an Operations Violation involving the sale of services and/
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, a franchisee must pay the Operations Non-Compliance Fee within 14 days of the date of Casiola's invoice. This fee is levied when a franchisee violates any operational requirement outlined in Article 7 of the franchise agreement.
The Operations Non-Compliance Fee varies depending on the nature of the violation. Specifically, the fee is $1,000 for each instance involving the sale of services or products that are not approved by Casiola, or for failing to exclusively use System Supplies or designated suppliers. For all other operational violations, the fee is $500 per instance.
In addition to the Operations Non-Compliance Fee, the franchisee is also responsible for covering all costs and expenses incurred by Casiola in connection with any inspections, audits, or re-inspections conducted to determine if the franchisee has corrected the Operations Violation according to Casiola's standards. It is important to note that these remedies do not constitute Casiola's consent to, or acceptance of, any Operations Violations.