What is the 'Base Year Revenue Amount' for Caring Senior Service franchises based on?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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- 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.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to the 2025 Caring Senior Service Franchise Disclosure Document, the 'Base Year Revenue Amount' is defined as the total gross revenue of the franchisee's prior business. This revenue must be derived from non-medical in-home services during the twelve months immediately preceding the effective date of the Franchise Agreement and the Development Addendum.
Caring Senior Service relies on the franchisee's provided financial information to determine their qualification for an incentive program. Therefore, the franchisee must warrant that all balance sheets, income statements, and other financial data furnished to Caring Senior Service are accurate and correct in all material respects.
Caring Senior Service retains the right to examine the books and financial records of the franchisee's prior business, in addition to any other books and records they are entitled to examine under Section 5.10 of the Franchise Agreement, to verify the 'Base Year Revenue Amount'. If the franchisor determines that the franchisee has overstated the Base Year Revenue Amount by two percent or more, the franchisee will be required to pay the difference between the reduced royalty fee and the original royalty fee, and the royalty fee will revert back to the original amount set forth in Section 5.2 of the Franchise Agreement.