Under what conditions can a Casiola franchisee request the right to purchase additional territories?
Casiola Franchise · 2024 FDDAnswer from 2024 FDD Document
and Territory Discounts**
Subject to market type, availability, and our discretion, at the time of signing your Franchise Agreement, you may request the right to purchase additional territories (each referred to as an "Additional Territory") to be added to your Operating Market and operated under one Franchise Agreement. Each Additional Territory will be comprised of approximately up to 5,000 potential rentable individual short-term rental properties within a 40 minute drive time from your administrative office. Your first Territory and, if applicable, each Additional Territory is collectively referred to collectively as your "Territories" and, individually, as a "Territory." When purchasing Additional Territories, the following initial franchise fees shall apply:
| Total Territories Purchased | Initial Franchise Fee per Territory | Cumulative Fee |
|---|---|---|
| (Includes First Territory) | ||
| 1 | $35,000 |
Source: Item 5 — INITIAL FEES (FDD pages 11–12)
What This Means (2024 FDD)
According to Casiola's 2024 Franchise Disclosure Document, a franchisee can request the right to purchase additional territories at the time of signing the Franchise Agreement. However, this is subject to market type, availability, and Casiola's discretion. Each additional territory will consist of approximately up to 5,000 potential rentable individual short-term rental properties within a 40-minute drive from the franchisee's administrative office.
When purchasing additional territories, the initial franchise fee varies depending on the total number of territories purchased. For instance, the initial franchise fee for one territory is $35,000, while purchasing two territories costs $32,500 per territory, totaling $65,000. The fee structure continues to decrease per territory as more are purchased, with five territories costing $28,000 each, totaling $140,000.
Casiola also offers territory discounts if a franchisee elects to enter into multiple Franchise Agreements, and these discounts are applicable only if the Franchise Agreements are signed at the same time. This provides an incentive for franchisees looking to expand their operations early on. Prospective franchisees should consider these factors and discuss territory availability and market conditions with Casiola to understand the potential for expansion and associated costs.