May Caring Senior Service be an approved supplier for goods or services in the future?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Other than for bookkeeping services, HUB services, and the Enkiscribe software, neither we, nor our Parent or any affiliate of ours, is currently an approved supplier of goods or services, though we may be an approved supplier for other goods or services in the future. Except for Mr. Salter and Mr. Klaes' ownership interest in Enkiscribe, none of our officers have an ownership interest in any other approved supplier.
All of your required purchases represent approximately 20% to 40% of your total purchases in connection with the establishment of your Franchised Business and approximately 50% of your overall purchases in operating the Franchised Business.
We reserve the right to earn revenue from approved suppliers in the form of rebates, commissions or other compensation based on purchases by Caring Senior Service Businesses in the System. There are no restrictions on our use of this money. We currently do not receive any other rebate amounts.
During the fiscal year ended December 31, 2024, our total revenue was $3,592,410 of which 36% or $1,297,770 was the result of franchisee purchases and leases from us. There are currently no purchasing or distribution cooperatives, but we reserve the right to establish these in the future.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 21–23)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, while Caring Senior Service, its parent, or affiliates are not currently approved suppliers of goods or services (except for bookkeeping services, HUB services, and the Enkiscribe software), they may become approved suppliers in the future. This means that franchisees may be required to purchase goods or services directly from Caring Senior Service or its affiliates if they become approved suppliers.
Caring Senior Service maintains a list of approved suppliers in its Operations Manual, which is subject to change. Franchisees are obligated to purchase equipment, furniture, computer hardware and software, and other products and services from approved suppliers who meet Caring Senior Service's standards and specifications. If a franchisee wishes to use a product or supplier that is not yet approved, they must submit a written request for approval, which Caring Senior Service will decide on within a reasonable time (30 days).
Caring Senior Service also reserves the right to earn revenue from approved suppliers through rebates, commissions, or other compensation based on franchisee purchases. During the fiscal year ended December 31, 2024, Caring Senior Service's total revenue was $3,592,410, with 36% ($1,297,770) resulting from franchisee purchases and leases from them. While there are currently no purchasing or distribution cooperatives, Caring Senior Service reserves the right to establish them in the future, which could further influence the sources from which franchisees obtain goods and services.
Prospective franchisees should be aware that Caring Senior Service can modify the list of approved suppliers and may become a required supplier themselves. This could impact the cost and availability of goods and services necessary to operate the franchise. It is important to regularly review the Operations Manual and any updates to understand the current requirements and potential changes in approved suppliers.