Casago Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$23,000 - $1,287,000
Franchise Fee
$11,200
Total US Locations
42
Business Summary
Casago International LLC offers franchises for a full-service property management business that specializes in short-term vacation rentals and corporate housing. Casago Businesses recruit and onboard rental property owners, market rental units, develop pricing strategies, manage trust accounts for owner fees, process guest payments, handle guest check-ins and check-outs, and manage property housekeeping, maintenance, and repairs.
Corporate History
Casago International LLC was formed as an Arizona limited liability company on May 14, 2020. The company began offering Casago franchises in April 2021. Casago International LLC does not operate under any other name besides "Casago" and does not engage in other major business activities outside its franchise system. Casago International LLC is owned by Casago Holdings, LLC, which is further owned by Casago Global Holdings, LLC, and controlled by Wandercraft LLC, which is controlled by Steve Schwab, the founder and CEO. In December 2024, Casago Holdings entered into a merger agreement with Vacasa, Inc., a publicly traded company. This Vacasa Merger, expected to close in spring 2025, will result in Vacasa Opco becoming wholly owned by Casago Holdings, and new investor groups acquiring equity in Casago Holdings, shifting control away from Casago Global. Following the merger, Casago Holdings plans to sell Vacasa's property management contracts in specific markets to qualified buyers who will operate as Casago franchisees.
Financial Overview
Investment Range
$23,000 - $1,287,000
Franchise Fee (Low)
$11,200
Franchise Fee (High)
$112,000
Royalty %
3.5%
Marketing %
0.5%
Equipment Costs (High)
$400,000
Working Capital
$52,500
Audited Financials
Yes
Offers Financing
Yes
Audit Opinion
Going concern qualification
Financial Health Notes
Casago International LLC's financial statements indicate that the company has sustained continuous losses and negative cash flows from its operations, resulting in an accumulated deficit of $2,044,686 as of December 31, 2024. The franchisor explicitly notes in its "Special Risks" section that its financial condition "calls into question the franchisor's financial ability to provide services and support" to franchisees. The company's operations have been funded by contributions from its parent company and affiliates. As of December 31, 2024, Casago International LLC had $547,622 in cash but faced current liabilities of $2,339,104, indicating a significant working capital deficit. Management expects royalties to increase due to ongoing franchise sales and believes that, with continued financial assistance from its members, it can meet its funding requirements for at least one year. Despite these challenges, the auditor's report provided an unqualified opinion, meaning the financial statements are presented fairly in all material respects, though the underlying financial condition with losses and negative cash flows from operations is noted.
Financing Details
Casago International LLC generally does not offer direct or indirect financing to its franchisees, nor does it guarantee any franchisee's notes, leases, or other obligations. However, in specific cases related to the proposed Vacasa Merger, one or more of Casago's affiliates may, at their discretion, offer seller financing to qualified buyers who purchase Vacasa Markets. The terms of any such seller financing would be negotiated individually and outlined in a definitive purchase agreement.
Performance Metrics
Total US Locations
42
Franchised Units
36
Corporate Units
6
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Casago International LLC has no litigation that is required to be disclosed in Item 3 of its FDD. This means that Casago International LLC, its predecessors, parents, or affiliates have not been involved in any material litigation, such as lawsuits or legal proceedings, that typically need to be reported to prospective franchisees.
Bankruptcy History
Casago International LLC has no bankruptcy history to report. Neither the franchisor nor its management team has been involved in any bankruptcy proceedings that are required to be disclosed in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Casago International LLC franchisees must meet several conditions. They must provide written notice of their intent to renew between 90 and 180 days before the current term expires. Franchisees cannot be in breach of any agreements with Casago, its affiliates, or major suppliers, and must have satisfied all monetary obligations. They will need to sign Casago's then-current franchise agreement, which may have materially different terms. Additionally, franchisees must fulfill any current training requirements for renewing franchisees at their own expense and sign a general release.
Training & Support Program
Franchisor Assistance
Casago International LLC provides its franchisees with a range of support services, both before and after opening. Prior to opening, Casago provides access to its confidential Operations Manual, offers tuition-free initial training for the Designated Manager and other attendees (if they attend together), sets standards and specifications for the business, provides a list of required and preferred suppliers, and for new operators, approves or conducts their Grand Opening Marketing Campaign. For existing operators converting their business, Casago provides a brand conversion timeline. After opening, Casago offers ongoing consultation and advice on management and operations via phone, email, intranet, and on-site visits (though on-site visits may incur fees). Casago also specifies required software and may hold an annual conference, which franchisees are required to attend (with associated fees). Additionally, Casago may require franchisees to attend refresher or ongoing training courses and conducts periodic inspections to ensure quality and adherence to brand standards.
Initial Training Hours
76
Training Location
Puerto Penasco, MX
Ongoing Support
After opening, Casago International LLC franchisees receive continuing consultation and advice regarding management and operations, provided through telephone, email, intranet communication, and on-site visits (which incur fees for travel, lodging, and a professional support services fee per visit). Casago also designates specifications for required software and may hold an annual conference, which is mandatory for the Designated Manager and an additional employee if the franchise generated at least $7 million in Gross Rental Revenue in the prior year (attendance fees apply). The franchisor may also require franchisees and their Designated Managers or employees to attend refresher and ongoing training courses, either in person or online, for up to four days per year, with tuition fees and all associated expenses being the franchisee's responsibility. Casago also conducts periodic inspections of franchisee operations to review quality, service, and adherence to brand standards, which may be unannounced.
Franchise Requirements
Ideal Candidate Profile
Casago International LLC seeks franchisees who demonstrate strong managerial and entrepreneurial abilities, focusing on compliance with the Casago System standards and a commitment to customer service. Ideal candidates are business professionals who meet Casago's educational, managerial, and business standards, possess good moral character, business reputation, and credit rating, and have the aptitude and ability to operate the property management business effectively. Franchisees must appoint a Designated Manager, who may be the owner, to personally supervise the day-to-day operations of the Casago Business on a full-time basis, dedicating their best efforts. Candidates should also have adequate financial resources and capital to meet the performance obligations of the franchise agreement.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Hybrid
Owner Participation
Full-Time
Territory Type
Non-Exclusive
Territory Size Requirements
Casago International LLC defines its franchise territories based on factors like the amount of rental inventory in the area and the capacity of the franchisee to efficiently and effectively service that area. The boundaries of each territory are designated using geographic boundaries, grid coordinates, zip codes, or other specifications deemed appropriate by Casago. The size of the territory can vary among franchisees.
Staffing Notes
Casago International LLC requires franchisees to appoint a Designated Manager, subject to the franchisor's approval, who will personally supervise the day-to-day operations of the Casago Business on a full-time basis. If the franchisee is an individual, they can serve as the Designated Manager. The Designated Manager must successfully complete the initial training program before taking on managerial responsibilities. Franchisees are responsible for training their other employees using only franchisor-provided materials. Casago may require employees, contractors, and other individuals associated with the business, especially those with access to confidential information, to sign confidentiality agreements and, in some circumstances, non-competition agreements.