Under what conditions can a Casiola franchisee delegate management functions to an Operating Manager?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
7.I. MANAGEMENT OF THE FRANCHISED BUSINESS
- (1) Franchisee agrees that, at all times, that the development and operation of the Franchised Business shall be managed, operated, and maintained under the active, continuing management, substantial personal involvement and hands-on supervision, of Franchisee's Managing Owner. The Managing Owner must at all times be actively involved in the operation of the Franchised Business unless Franchisee delegates management functions to an authorized Operating Manager who, among other things, satisfactorily completes Franchisor's Training Program, and otherwise meets the criteria and conditions for qualification as an Operating Manager as designated and determined by Franchisor from time to time. If the Operating Manager is a family member of Franchisee and/or an Owner then the Operating Manager shall also sign and agree to be bound by the terms of the Franchise Owner Agreement and Guaranty.
- (2) Franchisee must, at all times, faithfully, honestly and diligently perform its obligations hereunder, and continuously exert its best efforts to promote and enhance the business of the Franchised Business and the goodwill of the Licensed Marks and the System.
- (3) If, at any time, the Franchised Business is not being managed by a Managing Owner or Operating Manager who satisfactorily completed the Training Program, Franchisor is authorized, but is not required, to immediately appoint a manager to maintain the operations of the Franchised Business for and on behalf of Franchisee. Franchisor's appointment of a manager of the Franchised Business does not relieve Franchisee of its obligations or constitute a waiver of Franchisor's right to terminate the Franchise pursuant to Article 16. Franchisor is not liable for any debts, losses, costs or expenses incurred in the operations of the Franchised Business or to any creditor of Franchisee for any products, materials, supplies or services purchased by the Franchised Business while it is managed by Franchisor's appointed manager.
- (4) Franchisee shall, at all times, maintain sufficient working capital to fulfill its obligations under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 47–209)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, a franchisee can delegate management functions to an authorized Operating Manager if the Managing Owner is actively involved in the operation of the Franchised Business. The Operating Manager must satisfactorily complete Casiola's Training Program and meet the criteria and conditions for qualification as an Operating Manager, as designated and determined by Casiola from time to time.
If the Operating Manager is a family member of the franchisee or an owner, they must also sign and agree to be bound by the terms of the Franchise Owner Agreement and Guaranty. This ensures that even when management is delegated, certain standards and agreements are upheld, especially when family members are involved.
If the Franchised Business is not being managed by a Managing Owner or Operating Manager who has satisfactorily completed the Training Program, Casiola is authorized, but not required, to immediately appoint a manager to maintain the operations of the Franchised Business on behalf of the franchisee. However, this appointment does not relieve the franchisee of their obligations or waive Casiola's right to terminate the franchise agreement. Casiola is not liable for any debts, losses, costs, or expenses incurred during the period when the business is managed by their appointed manager.