factual

Under what circumstances can Casiola elect not to submit a Service Order to a franchisee?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

  • (2) Provided that Franchisee: (i) does not engage in any Direct Solicitation of customers or potential customers outside of Franchisee's Operating Market or, within the Operating Market of another Casiola Business, (ii) Franchisee does not otherwise violate the restrictions set forth in Article 9 of this Agreement, and (iii) unless otherwise directed by Franchisor at any time, from time to time, and in Franchisor's sole direction, Franchisee may provide Approved Services and Products to a customer in an Open Area surrounding Franchisee's Operating Market. Upon written notice from Franchisor for any reason or no reason at all, Franchisee must discontinue from providing Approved Services and Products in an Open Area; and
  • (3) Once an Open Area becomes an Assigned Area, Franchisee shall cease communicating with customers previously serviced by Franchisee in the Open Area and Franchisee shall turnover to Franchisor, for the benefit of Franchisor or, another Casiola Business, all information and records related to the Approved Services and Products provided within the Open Area.

Nothing contained in this Article 3.I. shall expand either the non-exclusive franchise rights granted to franchisee in Article 2 of this Agreement or, Franchisee's Operating Market and, in the event of any inconsistency or conflict between the terms of this Article 3.I. and Article 2, Article 2 shall take precedence and govern.

Source: Item 23 — RECEIPTS (FDD pages 47–209)

What This Means (2024 FDD)

Based on the 2024 Casiola Franchise Disclosure Document, Casiola may direct a franchisee to stop providing approved services and products in an open area surrounding the franchisee's operating market. This direction can be given at any time, for any reason, or for no reason at all, at Casiola's sole discretion.

This means that a Casiola franchisee's ability to service customers outside their primary territory is not guaranteed and can be revoked by Casiola at any time. The franchisee must cease communication with customers previously serviced in the open area and turn over all related information and records to Casiola or another Casiola business.

This policy does not expand the non-exclusive franchise rights granted to the franchisee in Article 2 of the agreement or the franchisee's operating market. In case of any conflict between this policy and Article 2, Article 2 takes precedence.

Disclaimer: This information is extracted from the 2024 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.