Under the Casiola agreement, what happens if Schedule 1 does not specifically identify and designate an Operating Market?

According to the 2024 Casiola Franchise Disclosure Document, if Schedule 1 of the Franchise Agreement does not specifically identify and designate an Operating Market, or if Schedule 1 is not signed by Casiola, then the Operating Market will be determined by Casiola. This determination will be made using Casiola's Reasonable Business Judgment.

This means that if the franchisee and Casiola do not agree on or clearly define the Operating Market in Schedule 1, Casiola reserves the right to define it themselves. Casiola's definition must be based on reasonable business judgment, which the FDD defines as decisions made with the intention of benefiting the Casiola system. Factors that Casiola may consider include their profits, enhancing the value of their marks, increasing customer satisfaction, minimizing customer confusion, expanding brand awareness, and implementing marketing and accounting control systems.

For a prospective franchisee, this underscores the importance of clearly defining and agreeing upon the Operating Market in Schedule 1 during the franchise agreement negotiation. Failure to do so could result in Casiola assigning an Operating Market that may not be ideal for the franchisee's business goals or market knowledge. The franchisee should ensure that the agreed-upon Operating Market aligns with their expectations and business plan before signing the agreement.