factual

Under what conditions can Casiola elect to have Franchisee pay Royalty Fees on a periodic basis?

Casiola Franchise · 2024 FDD

Answer from 2024 FDD Document

Payment, Due Date, and Franchisor's Receipt of Revenues and Gross Sales: Franchisor, at Franchisor's election and in Franchisor's sole discretion may elect to have Franchisee pay to Franchisor Royalty Fees on a periodic basis such as weekly or monthly or, Franchisor may elect to pre-deduct all Royalty Fees from the rental revenues collected and/or received in connection with the Franchised Business and Gross Sales of the Franchised business on a per transaction basis when such sums are received (the "Due Date"). Franchisee acknowledges and agrees that any and all Gross Sales related to the Franchised Business, unless otherwise directed by Franchisor, shall be paid by customers, and/or end-user customers of the Franchised Business directly to Franchisor and/or Franchisor's designee. Franchisee agrees that Franchisor is fully authorized to receive, deposit, and disburse in accordance with the terms of this Agreement and/or as otherwise determined by Franchisor in Franchisor's Reasonable Business Judgment, the Gross Sales of the Franchised Business and that Franchisor is fully authorized to deduct Royalty Fees, Supplemental Royalty Fees, and any and all other fees, charges, and/or expenses set forth in the Article 5.B. or otherwise set forth

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

What This Means (2024 FDD)

According to the 2024 Casiola Franchise Disclosure Document, Casiola has the discretion to determine the payment schedule for Royalty Fees. Casiola can elect to have franchisees pay Royalty Fees on a periodic basis, such as weekly or monthly. Alternatively, Casiola can choose to pre-deduct all Royalty Fees from the rental revenues collected in connection with the franchised business and gross sales on a per-transaction basis when the funds are received.

This means that a prospective Casiola franchisee needs to be prepared for either a periodic payment schedule or an immediate deduction of royalty fees from revenues. The specific method will be determined by Casiola.

It is important for franchisees to understand that all gross sales related to the franchised business, unless otherwise directed by Casiola, must be paid directly to Casiola or its designee by customers. Casiola is authorized to receive, deposit, and disburse the gross sales and deduct Royalty Fees, Supplemental Royalty Fees, and any other fees or expenses as outlined in the agreement.

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.