Under what condition related to the Casiola agreement must a franchisee be to receive a Service Order?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
- (1) Franchisee must conduct the operations of the Franchised Business from within Franchisee's Operating Market and Franchisee must provide the Approved Services and Products on behalf of customers located within Franchisee's Operating Market. The marketing of the Franchised Business must be targeted to Franchisee's Operating Market and, at all times, must conform and comply with, among other things, the restrictions set forth in Article 9.G. of this Agreement;
- (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)
According to Casiola's 2024 Franchise Disclosure Document, a franchisee must adhere to specific out-of-territory rules to provide approved services and products to customers outside their designated operating market. Specifically, the franchisee must not engage in direct solicitation of customers or potential customers outside of their Operating Market or within the Operating Market of another Casiola Business. Additionally, the franchisee must not violate any restrictions outlined in Article 9 of the Franchise Agreement.
Unless otherwise directed by Casiola, the franchisee may offer approved services and products to customers in an open area surrounding their operating market. However, Casiola retains the right to direct the franchisee to discontinue providing services in an open area at any time, for any reason, with written notice.
Once an open area transitions into an assigned area, the franchisee is obligated to cease communication with customers previously serviced in that open area. Furthermore, the franchisee must transfer all information and records related to the approved services and products provided within the open area to Casiola, or to another Casiola Business as directed by Casiola. These rules are designed to manage market overlap and protect the interests of individual franchisees and the overall Casiola system.