Caring_Senior_Service 2025 Franchise FAQ - FDD Ninja

Question 1

For the 2024 calendar year, how many Caring Senior Service territories were operated by system franchisees for the full year?

Accepted Answer

The following charts include historical financial information based on the past performance of existing franchisees. Specifically, presented below are the Gross Billings figures of our franchised Caring Senior Service® Businesses for the 2024 calendar year. As of the end of the 2024 calendar year, there were 51 Territories that had been operated by System franchisees during the full 2024 calendar year under 51 separate franchise agreements. These 51 Territories were operated from 40 Caring Senior Service® franchisee office locations, each of which were also open and operating during the full 2024 calendar year. There are a reduced number of franchisee office locations as several franchisees operate more than one Territory from a single office location. Each of these 40 franchisee office locations are disclosed in the "All Franchisees" portion of the table below.

Source: Item 19 — Financial Performance Representations (FDD pages 45–48)

Question 2

According to the Caring Senior Service Franchisee Disclosure Acknowledgment, what is the franchisee acknowledging when they sign the document?

Accepted Answer

YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED, READ, AND UNDERSTOOD THIS AGREEMENT, INCLUDING THE EXHIBITS HERETO; THAT WE HAVE FULLY AND ADEQUATELY EXPLAINED THE PROVISIONS OF EACH TO YOUR SATISFACTION; AND THAT WE HAVE ACCORDED YOU AMPLE TIME AND OPPORTUNITY TO CONSULT WITH ADVISORS OF YOUR OWN CHOOSING ABOUT THE POTENTIAL BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT.

YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED THE DISCLOSURE DOCUMENT REQUIRED BY THE TRADE REGULATION RULE OF THE FEDERAL TRADE COMMISSION ENTITLED "DISCLOSURE REQUIREMENT AND PROHIBITIONS CONCERNING FRANCHISING AND BUSINESS OPPORTUNITY VENTURES" AT LEAST FOURTEEN (14) CALENDAR DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED.

YOU ARE AWARE OF THE FACT THAT SOME FRANCHISEES OF OURS MAY OPERATE UNDER DIFFERENT FORMS OF AGREEMENTS AND, CONSEQUENTLY, THAT OUR OBLIGATIONS AND RIGHTS IN RESPECT TO OUR VARIOUS FRANCHISEES MAY DIFFER MATERIALLY IN CERTAIN CIRCUMSTANCES.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 3

According to the Caring Senior Service Franchisee Disclosure Acknowledgment, what is the franchisee required to do regarding the Franchise Agreement?

Accepted Answer

YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED, READ, AND UNDERSTOOD THIS AGREEMENT, INCLUDING THE EXHIBITS HERETO; THAT WE HAVE FULLY AND ADEQUATELY EXPLAINED THE PROVISIONS OF EACH TO YOUR SATISFACTION; AND THAT WE HAVE ACCORDED YOU AMPLE TIME AND OPPORTUNITY TO CONSULT WITH ADVISORS OF YOUR OWN CHOOSING ABOUT THE POTENTIAL BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT.

YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED THE DISCLOSURE DOCUMENT REQUIRED BY THE TRADE REGULATION RULE OF THE FEDERAL TRADE COMMISSION ENTITLED "DISCLOSURE REQUIREMENT AND PROHIBITIONS CONCERNING FRANCHISING AND BUSINESS OPPORTUNITY VENTURES" AT LEAST FOURTEEN (14) CALENDAR DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED.

YOU ARE AWARE OF THE FACT THAT SOME FRANCHISEES OF OURS MAY OPERATE UNDER DIFFERENT FORMS OF AGREEMENTS AND, CONSEQUENTLY, THAT OUR OBLIGATIONS AND RIGHTS IN RESPECT TO OUR VARIOUS FRANCHISEES MAY DIFFER MATERIALLY IN CERTAIN CIRCUMSTANCES.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 4

According to the Caring Senior Service Franchisee Disclosure Acknowledgment, what is the franchisee required to do regarding the Disclosure Document?

Accepted Answer

Two copies of an acknowledgment of your receipt of this Disclosure Document appear at the end of the Disclosure Document. Please return one signed copy to us and retain the other for your records.

This disclosure document summarizes certain provisions of the franchise agreement and other information in plain language. Read this disclosure document and all agreements carefully.

If Caring Senior Service Franchise Partnership, L.P. offers you a franchise, it must provide this disclosure document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor or an affiliate in connection with the proposed franchise sale. New York and Rhode Island require that we give you this disclosure document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship. Michigan requires that we give you this disclosure document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.

YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED THE DISCLOSURE DOCUMENT REQUIRED BY THE TRADE REGULATION RULE OF THE FEDERAL TRADE COMMISSION ENTITLED "DISCLOSURE REQUIREMENT AND PROHIBITIONS CONCERNING FRANCHISING AND BUSINESS OPPORTUNITY VENTURES" AT LEAST FOURTEEN (14) CALENDAR DAYS PRIOR TO THE DATE ON WHICH THIS AGREEMENT WAS EXECUTED.

YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED, READ, AND UNDERSTOOD THIS AGREEMENT, INCLUDING THE EXHIBITS HERETO; THAT WE HAVE FULLY AND ADEQUATELY EXPLAINED THE PROVISIONS OF EACH TO YOUR SATISFACTION; AND THAT WE HAVE ACCORDED YOU AMPLE TIME AND OPPORTUNITY TO CONSULT WITH ADVISORS OF YOUR OWN CHOOSING ABOUT THE POTENTIAL BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT.

YOU ARE AWARE OF THE FACT THAT SOME FRANCHISEES OF OURS MAY OPERATE UNDER DIFFERENT FORMS OF AGREEMENTS AND, CONSEQUENTLY, THAT OUR OBLIGATIONS AND RIGHTS IN RESPECT TO OUR VARIOUS FRANCHISEES MAY DIFFER MATERIALLY IN CERTAIN CIRCUMSTANCES.

If Caring Senior Service Franchise Partnership, L.P. does not deliver this disclosure document on time or if it contains a false or misleading statement, or a material omission, a violation of federal law and state law may have occurred and should be reported to the Federal Trade Commission, Washington, DC 20580 and the appropriate state agency listed on Exhibit A.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 5

According to the Caring Senior Service Franchisee Disclosure Acknowledgment, what is the franchisee required to do regarding each addendum?

Accepted Answer

- 6.6 Franchisee has submitted to Franchisor, in a timely manner, all information and documents requested by Franchisor as a basis for the issuance of individual franchises or pursuant to any right granted to Franchisee by this Addendum or by any franchise agreement.
- 6.7 Franchisee and its Guarantors execute Franchisor's then-current form of general release in favor of Franchisor and related parties.
- 1. Forms Provided to Franchisee. From time to time, Franchisor may provide Franchisee with such forms and documentation that Franchisee can adapt for Franchisee's use in connection with the operation of the Franchised Business ("Forms"). Such forms may be related to employment or client matters or other such matters as Franchisor deems advisable in its sole discretion. Franchisor makes no representation or warranty as to the enforceability of any such form, whether any such form meets the legal requirements of the jurisdiction in which Franchisee does business, and Franchisee acknowledges that it is Franchisee's responsibility to modify such form to meet all laws and regulations applicable in the area in which Franchisee operates the Franchised Business and to use no form in its business that does not comply with applicable law. Franchisee shall have all such forms provided to it by Franchisor reviewed by its legal counsel, and revised to conform such form to applicable law. Franchisee further agrees to submit to Franchisor as soon as practicable all forms revised pursuant to this Section.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 6

According to the Caring Senior Service Franchisee Disclosure Acknowledgment, what is the franchisee required to do regarding each related agreement?

Accepted Answer

t forth below.

| GUARANTORS:          |      |  |
|----------------------|------|--|
| [Name], Individually | Date |  |
| [Name], Individually | Date |  |

#### EXHIBIT J TO THE DISCLOSURE DOCUMENT

## FRANCHISEE DISCLOSURE ACKNOWLEDGMENT STATEMENT

THIS COMPLIANCE QUESTIONNAIRE AND ITS RESPONSES, IF COMPLETED, ARE VOID AS TO CALIFORNIA, ILLINOIS, INDIANA, MICHIGAN, MINNESOTA, VIRGINIA, AND WISCONSIN FRANCHISEES.

As you know, Caring Senior Service Franchise Partnership, L.P. (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Caring Senior Service Business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor ("Broker") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.

In the event that you are intending to purchase an existing Franchised Business from an existing Franchisee, you may have received information from the transferring Franchisee, who is not an employee or representative of the Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.

|    | 1.  | Are you seeking to enter into the Franchise Agreement in connection with a purchase or transfer of an existing Franchised Business from an existing Franchisee? |
|----|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|    | Yes | No                                                                                                                                                                 |
| 20 | 2.  | I had my first face-to-face meeting with a Franchisor representative on,                                                                                           |
|  | 3. | Have you received and personally reviewed the Franchise Agreement, each addendum, |
|  |  | and/or related agreement provided to you? |
|    | Yes | No                                                                                                                                                                 |
|  | 4. | Do you understand all of the information contained in the Franchise Agreement, each |
|  |  | addendum, and/or related agreement provided to you?

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 7

According to the table, were there any Caring Senior Service franchise transfers in any listed state during 2022, 2023, or 2024 that exceeded 2?

Accepted Answer

| State | Year | Number of Transfers |
|---|---|---|
| Arizona | 2022 | 0 |
|  | 2023 | 2 |
|  | 2024 | 0 |
| Colorado | 2022 | 0 |
|  | 2023 | 1 |
|  | 2024 | 0 |
| Georgia | 2022 | 0 |
|  | 2023 | 2 |
|  | 2024 | 0 |
| Nebraska | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Ohio | 2022 | 0 |
|  | 2023 | 1 |
|  | 2024 | 0 |
| Tennessee | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 1 |
| Texas | 2022 | 2 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Utah | 2022 | 0 |
|  | 2023 | 1 |
|  | 2024 | 0 |
| Wisconsin | 2022 | 0 |
|  | 2023 | 1 |
|  | 2024 | 0 |
| Year | Number of Transfers |  |
| 2022 | 4 8 1 |  |
| 2023 |  |  |
| 2024 |  |  |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 48–53)

Question 8

Across all listed states, what was the highest number of Caring Senior Service franchise transfers in a single state during 2022?

Accepted Answer

| State | Year | Number of Transfers |
|---|---|---|
| Arizona | 2022 | 0 |
|  | 2023 | 2 |
|  | 2024 | 0 |
| Colorado | 2022 | 0 |
|  | 2023 | 1 |
|  | 2024 | 0 |
| Georgia | 2022 | 0 |
|  | 2023 | 2 |
|  | 2024 | 0 |
| Nebraska | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Ohio | 2022 | 0 |
|  | 2023 | 1 |
|  | 2024 | 0 |
| Tennessee | 2022 | 1 |
|  | 2023 | 0 |
|  | 2024 | 1 |
| Texas | 2022 | 2 |
|  | 2023 | 0 |
|  | 2024 | 0 |
| Utah | 2022 | 0 |
|  | 2023 | 1 |
|  | 2024 | 0 |
| Wisconsin | 2022 | 0 |
|  | 2023 | 1 |
|  | 2024 | 0 |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 48–53)

Question 9

What is the average annual gross billing for all Caring Senior Service franchisee offices in 2024?

Accepted Answer

| Provision | Section in Franchise Agreement (FA) and Development Addendum (DA) | Summary |
|---|---|---|
| a. Term of the franchise | FA: Section 2.1 DA: Sections 4 and 5 | Five years. The term of the Development Addendum is mutually agreed upon between you and us and expires on the earlier of your execution of the franchise agreement for the development of your last Development Territory and your failure to enter into a franchise agreement for the development of any Development Territory by the set deadline. . |
| b. Renewal or extension of the term | FA: Section 2.2 DA: Section 5 | Three five-year renewal terms. Each Development Period may be extended for a period of six months. |
| c. Requirements for franchisee to renew or extend | FA: Section 2.2 | You must : (a) give us written notice six to nine months prior to the expiration of the then-current term; (b) not be in breach of the Franchise Agreement or any agreement between us or our affiliates; (c) be compliant with all GreatCare certification requirements for your staff and caregivers; (d) execute the then-current form of franchise agreement and all other ancillary agreements, which may contain terms and conditions materially different from your |
| Provision | Section in Franchise Agreement (FA) and Development Addendum (DA) | Summary |
|  | DA: Not Applicable | the Business, or the franchise entity. |
| l. Franchisor approval of transfer by franchisee | FA: Sections 16.2, 16.3, 16.4 and 16.7 DA: Section 8 | You must obtain our consent before transferring any interest. The DA cannot be transferred or assigned by you. |
| m. Conditions for franchisor approval of transfer | FA: Sections 16.2, 16.3 and 16.4 DA: Not Applicable | Includes payment of money owed to us, you are not in default of the Franchise Agreement, you and your owners sign a general release, transferee qualifies, transferee signs a new agreement and successfully completes training; transferee purchases all assets used in the Business and assumes all your business liabilities; and payment of the transfer fee. |
| n. Franchisor’s right of first refusal to acquire franchisee’s business | FA: Section 16.5 DA: Not Applicable | Within 30 days after notice, we have the option to purchase the transferred interest on the same terms and conditions of any bona fide offer. |
| o. Franchisor’s option to purchase franchisee’s business | FA: Section 14.6 DA: Not Applicable | Upon expiration or termination, we have the option (but not the obligation) to purchase all tangible assets of the Business, including real property. |
| p. Death or disability of franchisee | FA: Section 16.7 DA: Not Applicable | Franchise must be assigned to approved buyer within six months following the death or permanent incapacity of you or your controlling shareholder. |
| q. Non-competition covenants during the term of the franchise | FA: Section 15.1 DA: Not Applicable (Section 15.1 of the FA Applies) | Includes prohibition on owning or operating a business which sells similar services. |
| r. Non-competition | FA: Section 15.2 | For a period of two years after the expiration or termination |
| covenants after the |  | of the franchise, you may not own or operate a business |
| franchise is |  | which sells similar services within 15 miles of your former |
| terminated or |  | Territory or within 15 miles of the territory of any other |
| Provision | Section in Franchise Agreement (FA) and Development Addendum (DA) | Summary |
| expires | DA: Not Applicable | franchisee in the System. |
| s. Modification of the agreement | FA: Section 24.9 DA: Not Applicable (Section 24.9 of the FA Applies) | The Franchise Agreement may not be modified unless mutually agreed to in writing; but the Manuals, various policies, required purchases and services and the Marks are subject to change. |
| t. Integration/merger clause | FA: Section 24.2 DA: Not Applicable (Section 24.2 of the FA Applies) | Notwithstanding the foregoing, nothing in any agreement is intended to disclaim the express representations made in the Franchise Disclosure Document, its exhibits and amendments. Only the terms of the Franchise Agreement and other related written agreements are binding (subject to applicable law). Any representations or promises outside of the Franchise Disclosure Document and the Franchise Agreement may not be enforceable. |
| u. Dispute resolution by arbitration or mediation | FA: Section 21.1 DA: Not Applicable (Section 21.1 of the FA Applies) | Except for certain claims requesting injunctive relief, all disputes must be arbitrated in the city where we maintain our headquarters, currently, San Antonio, Texas (subject to state law). |
| v. Choice of forum | FA: Section 21.3 DA: Not Applicable (Section 21.3 of the FA Applies) | In the city where we maintain our headquarters, currently, San Antonio, Bexar County, Texas, except for applicable franchise laws of other states. |
| w. Choice of law | FA: Section 21.10 | Texas law applies generally, except for applicable franchise |
|  | DA: Not Applicable | laws of other states. |
| Provision | Section in Franchise Agreement (FA) and Development Addendum (DA) (Section 21.10 of the FA Applies) | Summary |
| Franchisee Offices with Minimum Required Staff: 2024 Gross Billings |  |  |
| Number of Franchises | 24 |  |
| Range of Gross Billings | $2,661,635 to $475,724 |  |
| Average Annual Gross Billings | $1,262,903 |  |
| Median Gross Billings | $1,177,988 |  |
| Number and Percentage of Franchisees Offices That | 11 or 45.8% |  |
| Met or Are Greater Than Average |  |  |
| Average Gross Margin | 51.38% (8 or 33.33% met or were greater than the average) |  |
| Median Gross Margin | 50.41% |  |
| All Franchisee Offices: 2024 Gross Billings |  |  |
| Number of Franchisee Offices | 40 |  |
| Range of Gross Billings | $2,661,635 to $88,963 |  |
| Average Annual Gross Billings | $953,065 |  |
|  | Provision expires | Section i

Source: Item 19 — Financial Performance Representations (FDD pages 45–48)

Question 10

What is the average gross margin for Caring Senior Service franchisees?

Accepted Answer

| Provision | Section in Franchise Agreement (FA) and Development Addendum (DA) | Summary |
|---|---|---|
|  | (Section 21.10 of the FA Applies) |  |
| Franchisee Offices with Minimum Required Staff: 2024 Gross Billings |  |  |
| Number of Franchises | 24 |  |
| Range of Gross Billings | $2,661,635 to $475,724 |  |
| Average Annual Gross Billings | $1,262,903 |  |
| Median Gross Billings | $1,177,988 |  |
| Number and Percentage of Franchisees Offices That | 11 or 45.8% |  |
| Met or Are Greater Than Average |  |  |
| Average Gross Margin | 51.38% (8 or 33.33% met or were greater than the average) |  |
| Median Gross Margin | 50.41% |  |
| All Franchisee Offices: 2024 Gross Billings |  |  |
| Number of Franchisee Offices | 40 |  |
| Range of Gross Billings | $2,661,635 to $88,963 |  |
| Average Annual Gross Billings | $953,065 |  |#### Notes:

1. Gross Billings – This represents the Gross Billings for each franchised business in the sample for the period January 1, 2024 to December 31, 2024. The franchisee Gross Billings are those amounts reported by the franchisees to us. We have not audited the reports, nor have franchisees confirmed that their reports are prepared in accordance with generally accepted accounting principles.

The term "Gross Billings" means all amounts clients are obligated to pay in connection with the sale of products and services related to the Franchised Business (including all amounts invoiced to clients), regardless of collection, less any sales taxes or taxes collected by franchisee from clients for transmittal to the appropriate taxing authority and authorized discounts, plus business interruption insurance proceeds.

- 2. Gross Margin This term, as used in the above charts, is calculated as Gross Billings, less Caregiver Pay expenses, divided by Gross Billings. In this calculation, Gross Billings does not include billed amounts for products sold to clients. "Caregiver Pay" expenses exclude the employer's portion of payroll taxes and workers' compensation.
- 3. The "Minimum Required Staff" includes, specifically, one individual acting as a full-time Agency Director, one individual acting as a full-time Care Manager, and one individual acting as a full-

time Business's Homecare Consultant.

Source: Item 19 — Financial Performance Representations (FDD pages 45–48)

Question 11

What is the estimated total initial investment range for a Caring Senior Service franchise?

Accepted Answer

| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Paid |
|---|---|---|---|---|
| Franchise Fee1 | $49,000 | Lump sum | When Franchise Agreement is Signed | Us |
| Type of Expenditure | Amount | Method of Payment | When Due | To Whom Paid |
| Leasehold | $0 to $1,000 | As agreed | As agreed | Contractor |
| Improvements2 |  |  |  |  |
| Equipment, Furniture, Fixtures, Computer Systems and Office Supplies3 | $5,000 to $8,500 | As agreed | As agreed | Us and/or Suppliers |
| Signage4 | $0 to $1,500 | As agreed | As agreed | Us and/or Suppliers |
| Rent5 | $800 to $4,000 | As agreed | As agreed | Landlord |
| Miscellaneous Opening Costs6 | $1,500 to $5,000 | As agreed | As agreed | Utility Companies; Insurance Companies; Attorney or Accountant |
| Initial Marketing/ Grand Opening Event7 | $6,500 to $7,500 | As agreed | As agreed | Approved Suppliers |
| Business Permits and | $0 to $12,100 | As agreed | As agreed | Government |
| Licenses8 |  |  |  | Agencies |
| Initial Inventory9 | $0 to $300 | As incurred | As incurred | Suppliers |
| Vehicle10 – 2 months | $400 to $1,000 | As agreed | As agreed | Third Parties |
| Branded Attire | $50 to $250 | As incurred | As incurred | Suppliers |
| Travel and Living Expenses While Training11 | $4,250 to $7,150 | As incurred | As incurred | Airlines, Hotels, Restaurants |
| Additional Funds – 3 | $29,872 to $51,444 | As incurred | As incurred | Suppliers |
| Months12 |  |  |  |  |
| Total | $97,372 to $148,744 |  |  |  |

Source: Item 7 — ESTIMATED INITIAL INVESTMENT YOUR ESTIMATED INITIAL INVESTMENT (FDD pages 17–21)

Question 12

How many Caring Senior Service company-owned outlets are projected to open in the next fiscal year?

Accepted Answer

| State          | Franchise Agreements Signed but Outlet Not Opened | Projected New Franchised Outlets in the Next Fiscal Year | Projected New Company-Owned Outlets in the Next Fiscal Year |
|----------------|---------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------|
| Colorado       | 1                                                       | 0                                                              | 0                                                                    |
| Florida        | 1                                                       | 0                                                              | 0                                                                    |
| Georgia        | 0                                                       | 2                                                              | 0                                                                    |
| Missouri       | 0                                                       | 1                                                              | 0                                                                    |
| New Jersey     | 0                                                       | 2                                                              | 0                                                                    |
| Ohio           | 1                                                       | 0                                                              | 0                                                                    |
| South Carolina | 1                                                       | 0                                                              | 0                                                                    |
| Texas          | 1                                                       | 3                                                              | 0                                                                    |
| Total          | 5                                                       | 8                                                              | 0                                                                    |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 48–53)

Question 13

How many Caring Senior Service franchisee office locations were open and operating during the full 2024 calendar year?

Accepted Answer

The following charts include historical financial information based on the past performance of existing franchisees. Specifically, presented below are the Gross Billings figures of our franchised Caring Senior Service® Businesses for the 2024 calendar year. As of the end of the 2024 calendar year, there were 51 Territories that had been operated by System franchisees during the full 2024 calendar year under 51 separate franchise agreements. These 51 Territories were operated from 40 Caring Senior Service® franchisee office locations, each of which were also open and operating during the full 2024 calendar year. There are a reduced number of franchisee office locations as several franchisees operate more than one Territory from a single office location. Each of these 40 franchisee office locations are disclosed in the "All Franchisees" portion of the table below.

Source: Item 19 — Financial Performance Representations (FDD pages 45–48)

Question 14

How many separate franchise agreements were associated with the Caring Senior Service territories operated for the full 2024 calendar year?

Accepted Answer

As of the end of the 2024 calendar year, there were 51 Territories that had been operated by System franchisees during the full 2024 calendar year under 51 separate franchise agreements. These 51 Territories were operated from 40 Caring Senior Service® franchisee office locations, each of which were also open and operating during the full 2024 calendar year. There are a reduced number of franchisee office locations as several franchisees operate more than one Territory from a single office location. Each of these 40 franchisee office locations are disclosed in the "All Franchisees" portion of the table below.

Source: Item 19 — Financial Performance Representations (FDD pages 45–48)

Question 15

What is the median gross billing for Caring Senior Service franchisees?

Accepted Answer

| Median Gross Billings | $921,349 |
|---|---|
| Number and Percentage of Franchisees Offices That | 19 or 47.5% |
| Met or Are Greater Than Average |  |
| Average Gross Margin | 49.34% (22 or 55% met or were greater than the average) |
| Median Gross Margin | 50.12% |
| Franchisee Offices with First Full 12 Months of Operations in 2024: 2024 Gross Billings |  |
| Number of Franchises | 2 |
| Range of Gross Billings | $1,194,273 to $475,724 |
| Average Annual Gross Billings | $834,999 |
| Median Gross Billings | $834,999 |
| Number and Percentage of Franchisees Offices That | 1 or 50% |
| Met or Are Greater Than Average |  |
| Average Gross Margin | 46.98% (1 or 50% met or were greater than the average) |
| Median Gross Margin | 46.98% |
| Franchisee Offices with Second Full 12 Months of Operations in 2024: 2024 Gross Billings |  |
| Number of Franchises | 2 |
| Range of Gross Billings | $1,336,735 to $265,679 |
| Average Annual Gross Billings | $801,207 |
| Median Gross Billings | $801,207 |
| Number and Percentage of Franchisees Offices That | 1 or 50% |
| Met or Are Greater Than Average |  |
| Average Gross Margin | 57.73% (1 or 50% met or were greater than the average) |
| Median Gross Margin | 57.73% |

Source: Item 19 — Financial Performance Representations (FDD pages 45–48)

Question 16

What is the median gross margin for Caring Senior Service franchisees?

Accepted Answer

| Median Gross Billings | $921,349 |
|---|---|
| Number and Percentage of Franchisees Offices That | 19 or 47.5% |
| Met or Are Greater Than Average |  |
| Average Gross Margin | 49.34% (22 or 55% met or were greater than the average) |
| Median Gross Margin | 50.12% |
| Franchisee Offices with First Full 12 Months of Operations in 2024: 2024 Gross Billings |  |
| Number of Franchises | 2 |
| Range of Gross Billings | $1,194,273 to $475,724 |
| Average Annual Gross Billings | $834,999 |
| Median Gross Billings | $834,999 |
| Number and Percentage of Franchisees Offices That | 1 or 50% |
| Met or Are Greater Than Average |  |
| Average Gross Margin | 46.98% (1 or 50% met or were greater than the average) |
| Median Gross Margin | 46.98% |
| Franchisee Offices with Second Full 12 Months of Operations in 2024: 2024 Gross Billings |  |
| Number of Franchises | 2 |
| Range of Gross Billings | $1,336,735 to $265,679 |
| Average Annual Gross Billings | $801,207 |
| Median Gross Billings | $801,207 |
| Number and Percentage of Franchisees Offices That | 1 or 50% |
| Met or Are Greater Than Average |  |
| Average Gross Margin | 57.73% (1 or 50% met or were greater than the average) |
| Median Gross Margin | 57.73% |

Source: Item 19 — Financial Performance Representations (FDD pages 45–48)

Question 17

What percentage of Caring Senior Service franchisee offices met or exceeded the average gross billings?

Accepted Answer

. | Median Gross Billings | $921,349 | |---|---| | Number and Percentage of Franchisees Offices That | 19 or 47.5% | | Met or Are Greater Than Average | | | Average Gross Margin | 49.34% (22 or 55% met or were greater than the average) | | Median Gross Margin | 50.12% | | Franchisee Offices with First Full 12 Months of Operations in 2024: 2024 Gross Billings | | | Number of Franchises | 2 | | Range of Gross Billings | $1,194,273 to $475,724 | | Average Annual Gross Billings | $834,999 | | Median Gross Billings | $834,999 | | Number and Percentage of Franchisees Offices That | 1 or 50% | | Met or Are Greater Than Average | | | Average Gross Margin | 46.98% (1 or 50% met or were greater than the average) | | Median Gross Margin | 46.98% | | Franchisee Offices with Second Full 12 Months of Operations in 2024: 2024 Gross Billings | | | Number of Franchises | 2 | | Range of Gross Billings | $1,336,735 to $265,679 | | Average Annual Gross Billings | $801,207 | | Median Gross Billings | $801,207 | | Number and Percentage of Franchisees Offices That | 1 or 50% | | Met or Are Greater Than Average | | | Average Gross Margin | 57.73% (1 or 50% met or were greater than the average) | | Median Gross Margin | 57.73% | | Hours Billed by Month During the First 12 Months in Operation | | | (By Franchises with Less than 5 Years in Operation) | | | Franchisee | Months 1 to 12 | | 1 | 94 | | 2 | 77 | | 31 | 0 | | 4 | 662 | | 5 | 50 | | 6 | 39 | | 7 | 3 | | 8 | 5 | | | | | AVG | 116 | | MED | 45 | | Hours Billed by Month During the Second 12 Months in Operation | | | (By Franchises with Less than 5 Years in Operation) | | | Franchisee | | | 1 | 2,644 | | 2 | 1,924 | | 32 | 1,227 | | 4 | 892 | | 5 | 1,171 | | 6 | 720 | | 7 | 1,556 | | 8 | 515 |Note 1. Franchisee Number 3 has two Territories, whereas the remaining Franchisees included in the above tables each have only one Territory. Note 2. The hours billed were obtained from our proprietary business management software, Tendio. Note 3. Source: Item 19 — Financial Performance Representations (FDD pages 45–48)

Question 18

As a prospective Caring Senior Service franchisee, what contracts are included as exhibits in the FDD?

Accepted Answer

We offer you a franchise agreement (the "Franchise Agreement"), attached to this Disclosure Document as Exhibit B, which gives you the right to establish and operate one Franchised Business at a location mutually approved by you and us (the "Location") within your approved geographic assigned Territory. The Franchise Agreement gives you the right to use the Proprietary Marks and the System solely with the operation of the Franchised Business, and, unless we agree otherwise, solely within your assigned Territory (See Item 12). Each Franchised Business will offer the Services under the Proprietary Marks. You will need approximately 650 to 800 square feet of office space for your Franchised Business, which can be in an executive suite of offices or other acceptable types of offices.

In addition to the establishment of new Franchised Businesses we offer a conversion program under which existing in-home care businesses may convert to a Caring Senior Service® Franchised Business. Conversion Franchised Businesses will receive certain fee reductions through our Conversion Addendum attached as Exhibit K to our form of Franchise Agreement.

### Development Addendum

In certain circumstances, we will offer to you the right to acquire development rights under the Development Addendum attached as Exhibit L to our form of Franchise Agreement (the "Development Addendum") to purchase the right to develop additional Franchised Businesses in agreed-upon territories contiguous to your assigned Territory under your first Franchise Agreement (the "Development Territories"). We will mutually agree-upon the additional Development Territories to be purchased before you sign the Development Addendum and they will be included in the Development Agreement.

Source: Item 22 — CONTRACTS (FDD page 53)

Question 19

What is the total amount of Caring Senior Service's long-term debt, net of the current portion, as of the date of this financial statement?

Accepted Answer

| Current Liabilities |  |  |
|---|---|---|
| Accounts payable: |  |  |
| Trade | $ 220,999 $ | 229,137 $ 238,542 |
| Related party | 2,858 | 3,232    528 |
| Accrued state franchise taxes | 23,126 | 17,941 10,738 |
| Advances from related party | 95,535 | 97,126     54,538 |
| Current portion of interest payable | 30,900 | -    - |
| Current portion of long-term debt | 6,750 | 16,921     10,037 |
| Current portion of note payable from related party | 6,845 | 3,869   - |
| Deferred franchise fees | 133,181 | 94,937     53,970 |
| Total Current Liabilities | 520,194 | 463,163   368,353 |
| Non-Current Liabilities |  |  |
| Interest payable | 6,312 | -      - |
| Long-term debt, net of current portion | 499,258 | 497,222 512,946 |
| Note payable from related party | 189,285 | 196,131     - |
| Total Non-Current Liabilities | 694,855 | 693,353   512,946 |
| TOTAL LIABILITIES | 1,215,049 | 1,156,516   881,299 |
| Partners' Capital |  |  |
| Partners' Capital (Deficit) - restated | 32,875 | ( 386,141)    (211,174) |
| Less: receivables from partner-owned entities | ( 583,639) | ( 467,100)    (367,100) |
| Total Partners' Capital (Deficit) | ( 550,764) | ( 853,241)    (578,274) |
| TOTAL LIABILITIES AND |  |  |
| PARTNERS' CAPITAL  (DEFICIT) | $    664,285 $ | 303,275 $   303,025 |

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 20

What is the total number of Caring Senior Service franchise agreements signed, but outlets not yet opened, across all listed states?

Accepted Answer

| State          | Franchise Agreements Signed but Outlet Not Opened | Projected New Franchised Outlets in the Next Fiscal Year | Projected New Company-Owned Outlets in the Next Fiscal Year |
|----------------|---------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------|
| Colorado       | 1                                                       | 0                                                              | 0                                                                    |
| Florida        | 1                                                       | 0                                                              | 0                                                                    |
| Georgia        | 0                                                       | 2                                                              | 0                                                                    |
| Missouri       | 0                                                       | 1                                                              | 0                                                                    |
| New Jersey     | 0                                                       | 2                                                              | 0                                                                    |
| Ohio           | 1                                                       | 0                                                              | 0                                                                    |
| South Carolina | 1                                                       | 0                                                              | 0                                                                    |
| Texas          | 1                                                       | 3                                                              | 0                                                                    |
| Total          | 5                                                       | 8                                                              | 0                                                                    |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 48–53)

Question 21

What was the total number of Caring Senior Service franchise transfers in 2022 across all states listed?

Accepted Answer

| State | Year | Number of Transfers |
|-------|------|---------------------|
|       | 2022 | 4                   |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 48–53)

Question 22

What is the total number of Caring Senior Service franchised outlets projected to open in the next fiscal year across all listed states?

Accepted Answer

| State          | Franchise Agreements Signed but Outlet Not Opened | Projected New Franchised Outlets in the Next Fiscal Year | Projected New Company-Owned Outlets in the Next Fiscal Year |
|----------------|---------------------------------------------------------|----------------------------------------------------------------|----------------------------------------------------------------------|
| Colorado       | 1                                                       | 0                                                              | 0                                                                    |
| Florida        | 1                                                       | 0                                                              | 0                                                                    |
| Georgia        | 0                                                       | 2                                                              | 0                                                                    |
| Missouri       | 0                                                       | 1                                                              | 0                                                                    |
| New Jersey     | 0                                                       | 2                                                              | 0                                                                    |
| Ohio           | 1                                                       | 0                                                              | 0                                                                    |
| South Carolina | 1                                                       | 0                                                              | 0                                                                    |
| Texas          | 1                                                       | 3                                                              | 0                                                                    |
| Total          | 5                                                       | 8                                                              | 0                                                                    |

Source: Item 20 — OUTLETS AND FRANCHISEE INFORMATION (FDD pages 48–53)

Question 23

What were the total royalty and other franchise fees earned by Caring Senior Service from franchises owned and operated by partner-owned entities for the year ended December 31, 2022?

Accepted Answer

yment terms, and are recorded as contra-equity in the balance sheet.

## **Revenue from Partner-Owned Entities**

Royalty and other franchise fees earned from franchises owned and operated partner-owned entities total \$554,841, \$490,668, and \$473,655 for the years ended December 31, 2024, 2023, and 2022. The table on the following page shows gross revenue recorded, trade accou

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 24

What years are covered by the audited financial statements for Caring Senior Service?

Accepted Answer

We have audited the accompanying financial statements of Caring Senior Service Franchise Partnership, L.P. (a Texas limited partnership) (the Partnership), which comprise the balance sheets as of December 31, 2024, 2023, and 2022, and the related statements of operations, changes in partners' capital, and cash flows for the years then ended, and the related notes to the financial statements.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Partnership as of December 31, 2024, 2023, and 2022, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)

Question 25

Are the Caring Senior Service financial statements for the period ending March 31, 2025 audited?

Accepted Answer

ITEM 21 FINANCIAL STATEMENTS

Attached to this Disclosure Document as Exhibit F, are the following financial statements:

- 1. Our unaudited balance sheet as of March 31, 2025 and our profit and loss statement for the period beginning January 1, 2025 through March 31, 2025; and
- 2. Our audited balance sheets as of December 31, 2024, 2023, and 2022, and the related statements of operations, change in partners' capital, and cash flows for the years then-ended.

Our fiscal year end is December 31.

Source: Item 21 — FINANCIAL STATEMENTS (FDD page 53)

Question 26

For the Caring Senior Service franchises with minimum required staff, what is the difference between the average and median gross billings?

Accepted Answer

| Provision | Section in Franchise Agreement (FA) and Development Addendum (DA) | Summary |
|---|---|---|
|  | (Section 21.10 of the FA Applies) |  |
| Franchisee Offices with Minimum Required Staff: 2024 Gross Billings |  |  |
| Number of Franchises | 24 |  |
| Range of Gross Billings | $2,661,635 to $475,724 |  |
| Average Annual Gross Billings | $1,262,903 |  |
| Median Gross Billings | $1,177,988 |  |
| Number and Percentage of Franchisees Offices That | 11 or 45.8% |  |
| Met or Are Greater Than Average |  |  |
| Average Gross Margin | 51.38% (8 or 33.33% met or were greater than the average) |  |
| Median Gross Margin | 50.41% |  |
| All Franchisee Offices: 2024 Gross Billings |  |  |
| Number of Franchisee Offices | 40 |  |
| Range of Gross Billings | $2,661,635 to $88,963 |  |
| Average Annual Gross Billings | $953,065 |  |

Source: Item 19 — Financial Performance Representations (FDD pages 45–48)

Question 27

Under what condition is a Caring Senior Service franchisee prohibited from using any of the Copyrighted Works on the Internet?

Accepted Answer

- (e) You may not use the Proprietary Marks or any part or derivative thereof or any of our copyrighted works on any Website, except as expressly permitted in writing. Without limiting the

Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 36–38)

Question 28

According to the disclosure document, what are the requirements for providing the disclosure document in Michigan for Caring Senior Service?

Accepted Answer

Michigan requires that we give you this disclosure document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 29

According to the disclosure document, what are the requirements for providing the disclosure document in New York and Rhode Island for Caring Senior Service?

Accepted Answer

New York and Rhode Island require that we give you this disclosure document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 30

According to the Caring Senior Service FDD, can the address for sending notices to either the franchisor or franchisee be changed, and if so, what is the procedure?

Accepted Answer

| Notices to Franchisor: | ATTN: Ian Klaes, Vice President Caring Senior Service Franchise Partnership, L.P. 201 East Park Avenue, #201 San Antonio, Texas 78212 |
|------------------------|------------------------------------------------------------------------------------------------------------------------------------------------|
| Notices to Franchisee: | ATTN:                                                                                                                                          |

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 31

According to the FDD, what must Caring Senior Service complete before receiving the initial franchise fee and other initial payments from franchisees in Virginia?

Accepted Answer

#### EXHIBIT J TO THE DISCLOSURE DOCUMENT

## FRANCHISEE DISCLOSURE ACKNOWLEDGMENT STATEMENT

THIS COMPLIANCE QUESTIONNAIRE AND ITS RESPONSES, IF COMPLETED, ARE VOID AS TO CALIFORNIA, ILLINOIS, INDIANA, MICHIGAN, MINNESOTA, VIRGINIA, AND WISCONSIN FRANCHISEES.

As you know, Caring Senior Service Franchise Partnership, L.P.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 32

According to the Caring Senior Service Franchise Disclosure Acknowledgment, what should a prospective franchisee do if they don't understand parts of the Franchise Agreement?

Accepted Answer

YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED, READ, AND UNDERSTOOD THIS AGREEMENT, INCLUDING THE EXHIBITS HERETO; THAT WE HAVE FULLY AND ADEQUATELY EXPLAINED THE PROVISIONS OF EACH TO YOUR SATISFACTION; AND THAT WE HAVE ACCORDED YOU AMPLE TIME AND OPPORTUNITY TO CONSULT WITH ADVISORS OF YOUR OWN CHOOSING ABOUT THE POTENTIAL BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 33

According to the Caring Senior Service Franchisee Disclosure Acknowledgment, what is the franchisee required to do if they do not understand parts of the Franchise Agreement, any Addendum, and/or related agreement?

Accepted Answer

YOU ACKNOWLEDGE THAT YOU HAVE RECEIVED, READ, AND UNDERSTOOD THIS AGREEMENT, INCLUDING THE EXHIBITS HERETO; THAT WE HAVE FULLY AND ADEQUATELY EXPLAINED THE PROVISIONS OF EACH TO YOUR SATISFACTION; AND THAT WE HAVE ACCORDED YOU AMPLE TIME AND OPPORTUNITY TO CONSULT WITH ADVISORS OF YOUR OWN CHOOSING ABOUT THE POTENTIAL BENEFITS AND RISKS OF ENTERING INTO THIS AGREEMENT.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 34

According to the Caring Senior Service Franchisee Disclosure Acknowledgment, what is the franchisee required to do if they are seeking to enter into the Franchise Agreement in connection with a purchase or transfer of an existing Franchised Business?

Accepted Answer

In the event that you are intending to purchase an existing Franchised Business from an existing Franchisee, you may have received information from the transferring Franchisee, who is not an employee or representative of the Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 35

According to the Caring Senior Service receipt, if you answered 'No' to question 9 and 'No' to questions 10-17, what are the instructions for the blank lines provided?

Accepted Answer

#### EXHIBIT J TO THE DISCLOSURE DOCUMENT

## FRANCHISEE DISCLOSURE ACKNOWLEDGMENT STATEMENT

THIS COMPLIANCE QUESTIONNAIRE AND ITS RESPONSES, IF COMPLETED, ARE VOID AS TO CALIFORNIA, ILLINOIS, INDIANA, MICHIGAN, MINNESOTA, VIRGINIA, AND WISCONSIN FRANCHISEES.

As you know, Caring Senior Service Franchise Partnership, L.P. (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Caring Senior Service Business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor ("Broker") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.

In the event that you are intending to purchase an existing Franchised Business from an existing Franchisee, you may have received information from the transferring Franchisee, who is not an employee or representative of the Franchisor. The questions below do not apply to any communications that you had with the transferring Franchisee. Please review each of the following questions and statements carefully and provide honest and complete responses to each.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 36

What action is required of a Caring Senior Service franchisee regarding local advertising expenditure if they do not have a full-time Homecare Consultant?

Accepted Answer

| Fee                                   | Amount                                                                                                                                                                                                                                                                                                              | Due Date                                                                       | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Marketing Fee | 2% of Gross Billings | Payable at the same time and in the same manner as the Royalty Fee | See Item 11. |
| Local Advertising and Promotion | \$5,000 during your first six months in operation; after which, if you do not have a full-time Homecare Consultant, we may require that you spend, in your next quarter, a maximum of the greater of \$2,500 per month or 1% of Gross Billings from your previous quarter | As incurred | Payable to local advertising suppliers. All advertising you want to use must be pre approved by us. After your initial expenditures during your first six months in operation, at any time that you employ a full-time Homecare Consultant, we will not require that you spend a minimum local advertising expenditure amount. During any period you do not have a full time Homecare Consultant, however, you must prepare a quarterly marketing plan outlining your local advertising expenditure. We reserve the right to revise your plan, however, no revision we make will require that you spend, in your next quarter, more than the greater of \$2,500 per month or 1% of Gross Billings from your previous quarter. If you do not submit the required marketing plans and reports, or you do not substantially implement any approved marketing plan, we may conduct promotional activities in your Territory for which costs and expenses you agree to reimburse us. |

Source: Item 6 — OTHER FEES (FDD pages 12–17)

Question 37

What actions must a Caring Senior Service franchisee take if there is a conflict between Caring Senior Service's privacy standards/policies and applicable law?

Accepted Answer

You must operate the Franchised Business in strict conformity with all applicable Federal, state and local laws, ordinances and regulations. These laws, ordinances and regulations vary from jurisdiction to jurisdiction and may be implemented or interpreted in a different manner. You must learn of the existence and requirements of all laws, ordinances and regulations applicable to the Franchised Business and you must adhere to them and to the then-current implementation or interpretation of them.

Each Caring Senior Service Business must meet our operational standards, as described in the Confidential Operations Manual or otherwise in writing. Such operational standards include criteria and minimum requirements for employee and staff training in accordance with our GreatCare® certification program.

You agree that all data and information collected by you from clients and potential clients in connection with your Franchised Business ("Client Data") is owned by us. You also agree to give us, or grant us unlimited access to, the Client Data any time we request it. You have a license and right to use the Client Data while this Agreement is in effect, but only in line with the policies that we establish and applicable law. You may not sell, transfer, or use Client Data for any purpose other than the operation of your Franchised Business in accordance with this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 38

Does the Addendum alter the original Franchise Agreement for Caring Senior Service?

Accepted Answer

ISE AGREEMENT

| This Conversion Addendum to the Caring Senior Service Franchise Agreement ("Addendum"), dated as             |  |
|--------------------------------------------------------------------------------------------------------------|--|
| of the Effective Date of the Franchise Agreement (as hereinafter defined) is attached to and made a part of  |  |
| the Caring Senior Service Franchise Agreement ("Franchise Agreement"), by and between Caring Senior          |  |
| Service Franchise Partnership, L.P., a Texas limited liability company having its principal business offices |  |
| located at 201 East Park Avenue, San Antonio, Texas 78212 and doing business as Caring Senior Service        |  |
| ("Franchisor"), and, a/an, having its principal                                                              |  |
| business office located at ("Franchisee" or "you"), for the                                                  |  |
| purpose of modifying and amending the terms of such Franchise Agreement.                                     |  |

#### BACKGROUND

- A. Prior to the Effective Date, Franchisee operated an independent non-medical residential assistance and care business ("Prior Business").
- B. As a special allowance for Franchisee to convert its Prior Business into a CARING SENIOR SERVICE franchised business and thereby join the Caring Senior Service System, Franchisor has offered Franchisee the financial incentives contained within this Addendum.

#### AGREEMENT

NOW, THEREFORE, in consideration of the above recitals and the agreements contained in this Addendum, Franchisor and Franchisee agree as follows:

- 1. All capitalized terms herein which are not separately defined herein shall have the meanings ascribed to such terms in the Franchise Agreement.
- 2. In the event of a conflict between the terms of the Franchise Agreement and the terms of this Addendum, the terms of this Addendum shall control.
- 3. Except as specifically modified by this Addendum, all terms of the Franchise Agreement are in full force and effect.
- 4. Franchisee represents and warrants to Franchisor that all balance sheets, income statements and other financial information that Franchisee furnished to Franchisor to determine the total gross revenue of Franchisee's Prior Business derived from non-medical in home services during the twelve (12) months immediately preceding the Effective Date of the Franchise Agreement and this Addendum ("Base Year Revenue Amount") are accurate and correct in all material respects. Franchisee acknowledges that Franchisor has relied upon such information as provided by Franchisee in determining Franchisee's qualification for the incentive program evidenced by this Addendum.
- 5. Franchisee agrees that Franchisor may, upon request, examine the books and financial records of Franchisee's Prior Business in addition to any other books and records that Caring Senior Service is entitled to examine in accordance with Section 5.10 of the Franchise Agreement.
- 6. The term "Opening Date" means the first day of the first full two-week period in which Royalty Fees are calculated in the System following Franchisee's completion of the initial training program set forth in Section 7.2 of the Agreement.
  - 7. Section 5.1 of the Franchise Agreement is hereby deleted and replaced with the following:
  - "5.1 Initial Franchise Fee: In consideration of the grant of this franchise, you shall pay to us a non-recurring initial franchise fee for the franchise hereunder in an amount equal to Twenty Two Thousand and Five Hundred Dollars (\$22,500).

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 39

Does the Addendum define the specific geographic area for the Caring Senior Service franchised business?

Accepted Answer

## ATTACHMENT A DEVELOPMENT TERRITORIES

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 40

Who bears the cost of defense if Caring Senior Service determines the franchisee did not use the Proprietary Marks according to the Franchise Agreement?

Accepted Answer

We may defend you against any third party claim, suit or demand arising out of your use of the Proprietary Marks. If we, in our sole discretion, determine that you have used the Proprietary Marks in accordance with the Franchise Agreement, the cost of the defense, including the cost of any judgment or settlement, will be borne by us. If we determine that you have not used the Proprietary Marks in accordance with the Franchise Agreement, the cost of the defense, including the cost of any judgment or settlement, will be yours. In the event of any litigation relating to your use of the Proprietary Marks, you must sign any and all documents and do any acts as may, in our opinion, be necessary to carry out the defense or prosecution, including becoming a nominal party to any legal action. Except to the extent that this litigation is the result of your use of the Proprietary Marks in a manner inconsistent with the terms of the Franchise Agreement, we will reimburse you for your out-of-pocket costs in doing these acts.

Source: Item 13 — TRADEMARKS (FDD pages 35–36)

Question 41

In California, does the Caring Senior Service franchisor have to defer the collection of all initial fees from franchisees until pre-opening obligations are complete and the franchisee is open for business?

Accepted Answer

The Department has determined that we, the franchisor, have not demonstrated we are adequately capitalized and/or that we must rely on franchise fees to fund our operations. The Commissioner has imposed a fee deferral condition, which requires that we defer the collection of all initial fees from California franchisees until we have completed all of our pre-opening obligations and you are open for business. For California franchisees who sign a development agreement, the payment of the development and initial fees attributable to a specific unit in your development schedule is deferred until that unit is open.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 42

In the case of an assignment of the Caring Senior Service franchise, when must interest holders execute a written agreement?

Accepted Answer

If you or any successor thereof is a partnership, corporation or limited liability company, or if the franchise granted hereunder is assigned to a partnership, corporation or limited liability company pursuant to Article 16 hereof:

- (a) upon the execution of this Agreement (or, in the case of an assignment, upon such assignment) and subject to the provisions of Article 16 hereof, upon each transfer of an interest in this Agreement or in you, all holders of an interest in you shall execute a written agreement with us in the form required by us individually undertaking to be bound, jointly and severally, by all of the terms of this Agreement;
- (b) the articles of partnership, partnership agreement, articles of incorporation, bylaws, articles of organization, operating agreement and other organization documents shall recite that the issuance and transfer of any interest therein is restricted by the terms of Article 16 of this Agreement and copies thereof shall be furnished to us at our request. You shall also submit to us, at any time upon request, a list of names and addresses of all directors, officers, partners and members or beneficial shareholders reflecting their respective interests in you and other information regarding you, in such form as we may require;

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 43

What compliance requirements must a Caring Senior Service franchisee meet to be eligible for renewal?

Accepted Answer

Subject to the provisions of this Section 2.2, you shall have an option (exercisable only by written notice delivered to us less than nine (9) months, but more than six (6) months, prior to the end of the Initial Term of this Agreement) to renew the franchise hereunder for three renewal terms of five (5) years each, if:

For the purposes hereof, you shall be deemed to have irrevocably elected not to renew the franchise hereunder (and the option to do so shall thereupon terminate) if you fail to execute and return to us our then-standard Franchise Agreement and other ancillary documents required by us for a renewal, together with payment of our renewal fee, within thirty (30) days after we have delivered them to you.

Even though we decline the renewal of your franchise, it is possible that we can be required to renew it under a law, rule, regulation, statute, ordinance, or legal order that is applicable at the time. If that happens, to the extent it is allowed by the concerned law, rule, regulation, statute, ordinance or order, your renewal term will be subject to the conditions of the Franchise Agreement we are using for new franchisees at the time the renewal period begins. If we are not then offering new franchises, your renewal period will be subject to the terms in the Franchise Agreement that we indicate. If for any reason that is not allowed, the renewal term will be governed by the terms of this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 44

What are the conditions that a Caring Senior Service franchisee must meet at the time they apply to exercise their development right and enter into a franchise agreement?

Accepted Answer

At the time you apply to us to exercise your development right and enter into a franchise agreement, you must: (1) be in compliance under your agreements with us and our affiliates; (2) be operating your existing Franchised Businesses and we determine that you are capable of operating an additional Franchised Business; (3) you satisfy our then-current financial criteria for franchisees; (4) you have achieved minimum performance benchmarks for multi-Territory franchisees as set in our Operations Manual; (5) in the preceding 12 months you have not been in financial default under your agreements with us or our affiliates; (6) you have submitted all information and documents requested by us; (7) you and your guarantors execute our form of general release.

Source: Item 12 — TERRITORY (FDD pages 33–35)

Question 45

What conditions must be met for Caring Senior Service franchisor approval of a transfer?

Accepted Answer

Conditions to Exercising Development Rights.

Franchisor's approval of Franchisee's application to exercise its development rights as to any Development Territory is subject to the following conditions precedent:

- 6.1 Franchisee, its Owners, and its affiliates are in compliance with the Franchise Agreement and all other agreements between Franchisee or its Owners, and Franchisor or its affiliates.

- 6.2 Franchisee is operating each of its existing CARING SENIOR SERVICE Franchised Businesses, and is capable of conducting the operation of the proposed additional CARING SENIOR SERVICE franchised businesses in the additional Territories, in accordance with the terms and conditions of the respective franchise agreements and the Standards, specifications, and procedures set forth and described in the Confidential Operations Manual (as defined in the Franchise Agreement), as determined by Franchisor in its discretion.

- 6.3 Franchisee and its Owners satisfy Franchisor's then-current financial criteria for franchisees and Owners of CARING SENIOR SERVICE franchised businesses.

- 6.4 Franchisee has achieved certain minimum performance benchmarks as set by Franchisor in the Confidential Operations Manual for multi-Territory franchisees in order to ensure a certain level of market penetration prior to Franchisee's expansion.

- 6.5 Franchisee is not in default and has not been in default during the 12-month period preceding Franchisee's request for financial approval of any monetary obligations owed to any of Franchisee's vendors or Franchisor or its affiliates under the Franchise Agreement or any other agreement between Franchisee or its affiliates and Franchisor or its affiliates.

Franchisee acknowledges and agrees that it is vital to Franchisor's interest that each of its franchisees are financially sound to avoid failure of a CARING SENIOR SERVICE

- franchised business and that such failure would adversely affect the reputation and good name of CARING SENIOR SERVICE franchised businesses and the System.
- 6.6 Franchisee has submitted to Franchisor, in a timely manner, all information and documents requested by Franchisor as a basis for the issuance of individual franchises or pursuant to any right granted to Franchisee by this Addendum or by any franchise agreement.
- 6.7 Franchisee and its Guarantors execute Franchisor's then-current form of general release in favor of Franchisor and related parties.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 39–45)

Question 46

What criteria might Caring Senior Service use to condition the approval of a supplier?

Accepted Answer

You must purchase all products, materials and supplies only from distributors and other suppliers approved by us from time to time.

- (ii) We may approve a single distributor or other supplier (collectively "supplier") for any product and may approve a supplier only as to certain products.

We may concentrate purchases with one (1) or more suppliers to obtain lower prices or the best advertising support or services for any group of Businesses.

We may, if we choose, take advantage of discounts offered by a supplier in connection with the acquisition of large quantities of products and resell said products to you at a profit.

Approval of a supplier may be conditioned on requirements relating to the frequency of delivery, concentration of purchases, standards of service, including prompt attention to complaints, or other criteria and may be temporary, pending our continued evaluation of the supplier from time to time.

- (iii) If you desire to purchase any unapproved items or from any unapproved supplier, you must submit to us a written request for approval of the proposed product or supplier and obtain our written approval of t

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 47

What is the deadline for submitting advertising materials to Caring Senior Service for approval?

Accepted Answer

Provided that you employ a full-time Homecare Consultant, we do not require that you spend a certain minimum dollar amount in order to advertise the business, but we do require that you exert efforts to promote the Franchised Business in your Territory. If, however, you do not hire a full-time Homecare Consultant, we require that you spend, during your next quarter, a minimum of the greater of \$2,500 per month and 1% of Gross Billings attained in your previous calendar quarter, to advertise the Franchised Business in your Territory. The nature of the Franchised Business is such that certain promotional and marketing efforts, especially with respect to referral sources, may not cost a great deal monetarily, therefore, in order to ensure franchisees exert the effort required to promote the Franchised Business, we require that you submit: (1) quarterly marketing and promotional plans outlining efforts to be made during your next calendar quarter of operations, due the 15th day after the start of each calendar quarter in which the plan is to be implemented; and (2) monthly reports including efforts exerted and amounts spent during the previous month, especially as compared to the commitments made in your quarterly report, due no later than the 15th day of each month. We reserve the right to revise your quarterly marketing and promotional plans to ensure that minimum required efforts in accordance with our Standards are being exerted. Provided, however, that our revision of your marketing and promotional efforts will not require you to spend amounts exceeding the minimum amount as described above. If you don't submit the required monthly or quarterly reports, or you don't substantially implement the plans submitted, approved, and/or revised by us, we may, at our option, conduct marketing and promotional activities in your Territory and you agree to reimburse us for our related costs. We may, for example, send our designee to conduct certain promotional activities such as determining and visiting various referral sources in your Territory. We anticipate the cost for this type of expense to equal \$5,000 per month.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–32)

Question 48

What is the dependency between having a full-time Homecare Consultant and the local advertising expenditure requirements for a Caring Senior Service franchise?

Accepted Answer

| Fee                                   | Amount                                                                                                                                                                                                                                                                                                              | Due Date                                                                       | Remarks                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|---------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Marketing Fee | 2% of Gross Billings | Payable at the same time and in the same manner as the Royalty Fee | See Item 11. |
| Local Advertising and Promotion | \$5,000 during your first six months in operation; after which, if you do not have a full-time Homecare Consultant, we may require that you spend, in your next quarter, a maximum of the greater of \$2,500 per month or 1% of Gross Billings from your previous quarter | As incurred | Payable to local advertising suppliers. All advertising you want to use must be pre approved by us. After your initial expenditures during your first six months in operation, at any time that you employ a full-time Homecare Consultant, we will not require that you spend a minimum local advertising expenditure amount. During any period you do not have a full time Homecare Consultant, however, you must prepare a quarterly marketing plan outlining your local advertising expenditure. We reserve the right to revise your plan, however, no revision we make will require that you spend, in your next quarter, more than the greater of \$2,500 per month or 1% of Gross Billings from your previous quarter. If you do not submit the required marketing plans and reports, or you do not substantially implement any approved marketing plan, we may conduct promotional activities in your Territory for which costs and expenses you agree to reimburse us. |

Source: Item 6 — OTHER FEES (FDD pages 12–17)

Question 49

What is the dependency between the Caring Senior Service promissory note payments and the Royalty Fee payments?

Accepted Answer

You expressly acknowledge and agree that your obligations for the full and timely payment of Royalty Fees and Marketing Fees (and all other amounts provided for in this Agreement) shall be absolute, unconditional, and fully earned. You shall not for any reason delay or withhold the payment of all or any part of those or any other payments due hereunder, put the same in escrow or set-off same against any claims or alleged claims you may allege against us or others. You shall not, on grounds of any alleged non-performance by us or others, withhold payment of any fee, including without limitation Royalty Fees or Marketing Fees, nor withhold or delay submission of any reports due hereunder.

- (d) You agree that sufficient funds will be made available in your account for withdrawal.
- (e) If we are unable to access your Gross Billings, or if we permit you to report your Gross Billings and you do not submit such report, for your Caring Senior Service Business, we may debit your account for one hundred twenty percent (120%) of the Royalty Fee and Marketing Fees that we most recently debited. If the Royalty Fee and Marketing Fee we debit are less than the Royalty Fee and Marketing Fee you actually owe us, once we have been able to determine your true and correct Gross Billings, we will debit your account for the balance on a day we specify. If the Royalty Fee and Marketing Fee we debit are greater than the Royalty Fee and Marketing Fee you actually owe us, we will credit the excess against the amount we otherwise would debit from your account during the following period.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 50

Is the Caring Senior Service Development Addendum effective immediately upon signing?

Accepted Answer

IN WITNESS WHEREOF, the parties have hereinafter executed this Addendum to be effective as of the Effective Date first written above.

CARING SENIOR SERVICE FRANCHISE PARTNERSHIP, L.P. a/an a Texas limited partnership by its General Partner SENIOR HEALTH SERVICES, INC. a Texas corporation [Name], [Title] Date: [Name], [Title]

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 51

Does the Caring Senior Service Development Addendum grant the right to purchase additional territories?

Accepted Answer

and Process. To exercise its development rights, Franchisee will deliver to Franchisor written notice of its intent to purchase one or more of the Development Territories (the "Exercise Notice"). The Exercise Notice will identify the Development Territory(ies) for which Franchisee is choosing to exercise its development rights. Within 30 days after receipt of the Exercise Notice and any other information or executed agreements Franchisor may require, as set forth in Section 6 below, Franchisor will notify Franchisee in writing whether or not the Franchisee is approved to exercise its development rights. If approved, Franchisor will send to Franchisee Franchisor's then-current Franchise Disclosure Document and an execution copy of its then-current franchise agreement for each Development Territory being purchased, which Franchisee must sign and deliver to Franchisor, with those exhibits and addendums agreed-to in this Addendum, and pay all applicable fees to Franchisor thereunder, within 30 days after its receipt. If the 30-day period expires and Franchisee has not executed all required agreements and paid the related initial amounts due, but Franchisee would still like to exercise its development rights, Franchisor may require that Franchisee repeat the approval process. If not approved, the rejection notice will be delivered to Franchisee in writing.
- 7. Conditions to Exercising Development Rights. Franchisor's approval of Franchisee's application to exercise its development rights as to any Development Territory is subject to the following conditions precedent:
  - 6.1 Franchisee, its Owners, and its affiliates are in compliance with the Franchise Agreement and all other agreements between Franchisee or its Owners, and Franchisor or its affiliates.
  - 6.2 Franchisee is operating each of its existing CARING SENIOR SERVICE Franchised Businesses, and is capable of conducting the operation of the proposed additional CARING SENIOR SERVICE franchised businesses in the additional Territories, in accordance with the terms and conditions of the respective franchise agreements and the Standards, specifications, and procedures set forth and described in the Confidential Operations Manual (as defined in the Franchise Agreement), as determined by Franchisor in its discretion.
  - 6.3 Franchisee and its Owners satisfy Franchisor's then-current financial criteria for franchisees and Owners of CARING SENIOR SERVICE franchised businesses.
  - 6.4 Franchisee has achieved certain minimum performance benchmarks as set by Franchisor in the Confidential Operations Manual for multi-Territory franchisees in order to ensure a certain level of market penetration prior to Franchisee's expansion.
  - 6.5 Franchisee is not in default and has not been in default during the 12-month period preceding Franchisee's request for financial approval of any monetary obligations owed to any of Franchisee's vendors or Franchisor or its affiliates under the Franchise Agreement or any other agreement between Franchisee or its affiliates and Franchisor or its affiliates.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 52

Does the Caring Senior Service Development Addendum supersede the original Franchise Agreement?

Accepted Answer

- 11. Miscellaneous. This Addendum represents the fully integrated and complete agreement between the parties and supersedes all other negotiations, agreements, representations, and covenants, oral or written. All other provisions of the Franchise Agreement remain in full force and effect. If any discrepancy or conflict arises between the provisions of this Addendum and the provisions of the Franchise Agreement, the provisions of this Addendum will control.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 53

What discount on the Franchise Fee does Caring Senior Service offer if I am converting an existing in-home care business?

Accepted Answer

In the event you are converting an existing in-home care business to a Caring Senior Service franchised business, we offer you a 50% discount on the Franchise Fee for the Territories being converted, as outlined in the Conversion Addendum attached as Exhibit K to the Franchise Agreement.

A 50% discount will be applied to the initial franchise fee if you are an existing Caring Senior Service System franchisee and your office has achieved our GreatCare Master certification, or if you operate multiple offices, one of your offices must have achieved our GreatCare Master certification and your remaining office(s) must have achieved any of our GreatCare office certification levels at the time of your additional purchase of a franchise.

If you are entering into a subsequent Franchise Agreement for an additional franchise Territory, we offer you a 10% discount off of the Franchise Fee for your second Territory, a 15% discount off of the Franchise Fee for your third Territory, a 20% discount off of the Franchise Fee for your fourth Territory, and a 25% discount off of the Franchise Fee for your fifth Territory.

Source: Item 5 — INITIAL FEES (FDD pages 10–11)

Question 54

What discount on the initial franchise fee does Caring Senior Service offer to existing franchisees who have achieved GreatCare Master certification?

Accepted Answer

A 50% discount will be applied to the initial franchise fee if you are an existing Caring Senior Service System franchisee and your office has achieved our GreatCare Master certification, or if you operate multiple offices, one of your offices must have achieved our GreatCare Master certification and your remaining office(s) must have achieved any of our GreatCare office certification levels at the time of your additional purchase of a franchise.

Source: Item 5 — INITIAL FEES (FDD pages 10–11)

Question 55

What discount does Caring Senior Service offer on the Franchise Fee for a fifth Territory?

Accepted Answer

If you are entering into a subsequent Franchise Agreement for an additional franchise Territory, we offer you a 10% discount off of the Franchise Fee for your second Territory, a 15% discount off of the Franchise Fee for your third Territory, a 20% discount off of the Franchise Fee for your fourth Territory, and a 25% discount off of the Franchise Fee for your fifth Territory.

Source: Item 5 — INITIAL FEES (FDD pages 10–11)

Question 56

What discount does Caring Senior Service offer on the Franchise Fee for a second Territory?

Accepted Answer

If you are entering into a subsequent Franchise Agreement for an additional franchise Territory, we offer you a 10% discount off of the Franchise Fee for your second Territory, a 15% discount off of the Franchise Fee for your third Territory, a 20% discount off of the Franchise Fee for your fourth Territory, and a 25% discount off of the Franchise Fee for your fifth Territory.

Source: Item 5 — INITIAL FEES (FDD pages 10–11)

Question 57

What discount does Caring Senior Service offer to qualifying VetFran military veterans on the initial Franchise Fee?

Accepted Answer

If you qualify for our VetFran military veteran's discount, we will offer you a 20% discount off of the initial Franchise Fee for your first franchise Territory. This discount is available to veterans who have received a discharge (other than dishonorable) as well as any active duty personnel. If the franchisee is an entity, the veteran participant must maintain at least a 51% ownership interest in the entity to qualify for this discount. To apply for the discount, you must provide us with a copy of form DD-214, reflecting your military status, before the Franchise Agreement is signed. In the event you qualify for our VetFran military veteran's discount and you are a conversion franchise, you may only benefit from one of these discounts.

Source: Item 5 — INITIAL FEES (FDD pages 10–11)

Question 58

What discount does Caring Senior Service offer to qualifying women-owned and minority-owned businesses on the initial Franchise Fee?

Accepted Answer

If you qualify for our women-owned and minority-owned program, we will offer you a 20% discount off of the initial Franchise Fee for your first franchise Territory. If the franchisee is an entity, the female owner based on whose ownership you qualify for the discount must maintain at least a 51% ownership interest in the entity, and the minority owner based on whose ownership you qualify for the discount must maintain at least a 51% interest in the entity.

Source: Item 5 — INITIAL FEES (FDD pages 10–11)

Question 59

Is the establishment and operation of a Caring Senior Service franchised business dependent on the Franchise Agreement?

Accepted Answer

As you know, Caring Senior Service Franchise Partnership, L.P. (the "Franchisor") and you are preparing to enter into a franchise agreement (the "Franchise Agreement") for the establishment and operation of a Caring Senior Service Business (the "Franchised Business"). The purpose of this Questionnaire is to determine whether any statements or promises were made to you by employees or authorized representatives of the Franchisor, or by employees or authorized representatives of a broker acting on behalf of the Franchisor ("Broker") that have not been authorized, or that were not disclosed in the Disclosure Document or that may be untrue, inaccurate or misleading. The Franchisor, through the use of this document, desires to ascertain (a) that the undersigned, individually and as a representative of any legal entity established to acquire the franchise rights, fully understands and comprehends that the purchase of a franchise is a business decision, complete with its associated risks, and (b) that you are not relying upon any oral statement, representations, promises or assurances during the negotiations for the purchase of the franchise which have not been authorized by Franchisor.

Subject to the terms, conditions and limitations elsewhere in this Agreement, we hereby grant to you a right and license to use the System, the Proprietary Marks and to market, sell and provide the Approved Services and Products in accordance with the System within your Territory. The Approved Services and Products are the only services and products authorized to be offered and sold at or through the Business.

You must operate the Franchised Business in strict conformity with all applicable Federal, state and local laws, ordinances and regulations. These laws, ordinances and regulations vary from jurisdiction to jurisdiction and may be implemented or interpreted in a different manner. You must learn of the existence and requirements of all laws, ordinances and regulations applicable to the Franchised Business and you must adhere to them and to the then-current implementation or interpretation of them.

You are licensed to use the Proprietary Marks, goodwill and trade secrets in the operation of the Business only at the location specified in Exhibit A.

Each Caring Senior Service Business must meet our operational standards, as described in the Confidential Operations Manual or otherwise in writing. Such operational standards include criteria and minimum requirements for employee and staff training in accordance with our GreatCare® certification program.

You agree that all data and information collected by you from clients and potential clients in connection with your Franchised Business ("Client Data") is owned by us. You also agree to give us, or grant us unlimited access to, the Client Data any time we request it. You have a license and right to use the Client Data while this Agreement is in effect, but only in line with the policies that we establish and applicable law. You may not sell, transfer, or use Client Data for any purpose other than the operation of your Franchised Business in accordance with this Agreement.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 60

What events trigger the start of the two-year non-compete period after leaving a Caring Senior Service franchise?

Accepted Answer

In the event of the expiration, non-renewal or termination of this Agreement for any reason whatsoever, or in the event this Agreement is transferred pursuant to Section 16.2, 16.4 or 16.7 hereof, you (or, in the case of a Transfer among the individuals comprising you pursuant to Section 16.4, the Transferor individual(s)) shall not, without our prior written consent, at any time during the period of two (2) years from the date of such expiration or termination or transfer, either individually or in conjunction with any person, firm, partnership or corporation or other third party as principal, agent, shareholder, director, officer, employee, consultant, guarantor or in any other manner whatsoever, directly or indirectly carry on, be engaged in or be concerned with or interested in, financially or otherwise, or advise in the operation of any Competitive Business within the Protected Territory of the Business and a fifteen (15) mile area surrounding the Protected Territory of the Business or within fifteen (15) miles of the protected territory of any other Business as of the date of termination.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 61

Is the execution of the Caring Senior Service Franchise Agreement dependent on the Development Addendum?

Accepted Answer

In the event you also enter into our Development Addendum to the Franchise Agreement, the terms of this Amendment will also apply to the terms of the Development Addendum.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 62

To what extent is each provision of the Amendment effective for Caring Senior Service franchisees?

Accepted Answer

- 12. Each provision of this Amendment shall be effective only to the extent that the jurisdictional requirements of California law applicable to the provisions are met independent of this Amendment. This Amendment shall have no force or effect if such jurisdictional requirements are not met.
- 13. As to any state law described in this Amendment that declares void or unenforceable any provision contained in the Agreement, Franchisor reserves the right to challenge the enforceability of the state law.
- 14. In the event you also enter into our Development Addendum to the Franchise Agreement, the terms of this Amendment will also apply to the terms of the Development Addendum.
- 15. All other provisions of the Agreement are hereby ratified and confirmed. IN WITNESS WHEREOF, the parties acknowledge that they have read and understand the contents of this Amendment, that they have had the opportunity to obtain the advice of counsel. Intending to be legally

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 63

Does the FDD specify any conditions under which the guarantee for a Caring Senior Service franchise might be waived or modified?

Accepted Answer

Conditions to Exercising Development Rights.

Franchisor's approval of Franchisee's application to exercise its development rights as to any Development Territory is subject to the following conditions precedent:

- 6.1 Franchisee, its Owners, and its affiliates are in compliance with the Franchise Agreement and all other agreements between Franchisee or its Owners, and Franchisor or its affiliates.

- 6.2 Franchisee is operating each of its existing CARING SENIOR SERVICE Franchised Businesses, and is capable of conducting the operation of the proposed additional CARING SENIOR SERVICE franchised businesses in the additional Territories, in accordance with the terms and conditions of the respective franchise agreements and the Standards, specifications, and procedures set forth and described in the Confidential Operations Manual (as defined in the Franchise Agreement), as determined by Franchisor in its discretion.

- 6.3 Franchisee and its Owners satisfy Franchisor's then-current financial criteria for franchisees and Owners of CARING SENIOR SERVICE franchised businesses.

- 6.4 Franchisee has achieved certain minimum performance benchmarks as set by Franchisor in the Confidential Operations Manual for multi-Territory franchisees in order to ensure a certain level of market penetration prior to Franchisee's expansion.

- 6.5 Franchisee is not in default and has not been in default during the 12-month period preceding Franchisee's request for financial approval of any monetary obligations owed to any of Franchisee's vendors or Franchisor or its affiliates under the Franchise Agreement or any other agreement between Franchisee or its affiliates and Franchisor or its affiliates.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Question 64

Is the Caring Senior Service Franchise Agreement effective without the Development Addendum?

Accepted Answer

ISE AGREEMENT

| This Conversion Addendum to the Caring Senior Service Franchise Agreement ("Addendum"), dated as             |  |
|--------------------------------------------------------------------------------------------------------------|--|
| of the Effective Date of the Franchise Agreement (as hereinafter defined) is attached to and made a part of  |  |
| the Caring Senior Service Franchise Agreement ("Franchise Agreement"), by and between Caring Senior          |  |
| Service Franchise Partnership, L.P., a Texas limited liability company having its principal business offices |  |
| located at 201 East Park Avenue, San Antonio, Texas 78212 and doing business as Caring Senior Service        |  |
| ("Franchisor"), and, a/an, having its principal                                                              |  |
| business office located at ("Franchisee" or "you"), for the                                                  |  |
| purpose of modifying and amending the terms of such Franchise Agreement.                                     |  |

#### BACKGROUND

- A. Prior to the Effective Date, Franchisee operated an independent non-medical residential assistance and care business ("Prior Business").
- B. As a special allowance for Franchisee to convert its Prior Business into a CARING SENIOR SERVICE franchised business and thereby join the Caring Senior Service System, Franchisor has offered Franchisee the financial incentives contained within this Addendum.

#### AGREEMENT

NOW, THEREFORE, in consideration of the above recitals and the agreements contained in this Addendum, Franchisor and Franchisee agree as follows:

- 1. All capitalized terms herein which are not separately defined herein shall have the meanings ascribed to such terms in the Franchise Agreement.
- 2.

Source: Item 23 — RECEIPTS (FDD pages 53–204)

Caring_Senior_Service 2025 FDD FAQ