Under what circumstances is Casiola authorized to appoint a manager for the Franchised Business?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
ment, approved by Franchisor in accordance with and subject to this Article 14 and the terms and conditions of this Agreement; and
- (19) Franchisor's consent to a Transfer of any interest that is subject to the restrictions of this Agreement shall not constitute a waiver of any claims it may have against Franchisee or deemed a waiver of Franchisor's right to demand strict and exact compliance with this Agreement by the transferee.
14.D. DEATH OR DISABILITY OF FRANCHISEE OR AN OWNER
(1) If Franchisee is an individual and not a Corporate Entity, upon the death or permanent disability of Franchisee, the executor, administrator, conservator or other personal representative of Franchisee, must appoint a manager that meets the equivalent of an Operating Manager within a reasonable time, which shall not exceed 30 days from the date of death or permanent disability. The appointed manager (as applicable) must serve and qualify as an Operating Manager and attend and successfully complete the Training Program within 60 days of the appointment. If Franchisee's Casiola Business is not being managed by a Franchisor approved Operating Manager (as applicable) within 30 days after such death or permanent disability, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of Franchisee's Casiola Business for, and on behalf of, Franchisee at Franchisee's sole costs until an approved Operating Manager is able to assume the management and operation of Franchisee's Casiola Business. Franchisor's appointment of a manager for Franchisee's Casiola Business does not relieve Franchisee of its obligations under this Agreement, including this Article 14.D., or constitute a waiver of Franchisor's right to terminate this Agreement pursuant to Article 16, below. At all times, including while Franchisee's Casiola Business may be managed by Franchisor's appointed manager, Franchisor shall not be liable for any debts, losses, costs, or expenses incurred in the operations of Franchisee's Casiola Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by Franchisee's Casiola Business. Franchisor has the right to charge a reasonable fee (the "Management Service Fees") for such management services and may cease to provide management services at any time.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, Casiola has the authority to appoint a manager for a franchisee's business under specific circumstances related to the death or permanent disability of the franchisee or the managing owner of a corporate entity franchisee. This action is not obligatory but is an option available to Casiola.
If the franchisee is an individual, their representative must appoint a manager meeting the standards of an Operating Manager within 30 days of the death or permanent disability. This manager must be approved by Casiola and complete the required training program within 60 days of appointment. Should the business not have a Casiola-approved Operating Manager within that initial 30-day period, Casiola is authorized to appoint a manager to oversee operations on behalf of the franchisee. The franchisee will bear the costs associated with this management.
Similarly, if the franchisee is a corporate entity and its Managing Owner dies or becomes permanently disabled, the remaining owners have 30 days to appoint a new Managing Owner approved by Casiola. If they fail to do so, Casiola is authorized to step in and appoint a manager at the franchisee's expense. Casiola can charge a reasonable fee for these management services and may discontinue them at any time. It is important to note that Casiola's appointment of a manager does not relieve the franchisee of their obligations under the Franchise Agreement, nor does it waive Casiola's right to terminate the agreement.