What is the 'Base Year Revenue Amount' for Caring Senior Service, and what period does it cover?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisor determines that Franchisee has overstated the Base Year Revenue Amount by two percent (2%) or more, then, within 10 days after the receipt of notice from Franchisor , Franchisee shall pay to Franchisor an amount equal to the difference between the reduced Royalty Fee set forth in Section 8 of this Addendum and the original Royalty Fee set forth in Section 5.2 of the Franchise Agreement, and going forward the Royalty Fee shall revert back to the original amount set forth in Section 5.2 of the Franchise Agreement. 9.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
I am unable to provide information about the 'Base Year Revenue Amount' for Caring Senior Service, as this specific term is mentioned within the context of overstated revenue and royalty fees, but the FDD excerpts do not define it or provide a specific value. The 2025 Franchise Disclosure Document does discuss revenue-related topics such as Gross Billings targets, royalty fees (5% of Gross Billings), and marketing fees (2% of Gross Billings). It also mentions the possibility of Caring Senior Service debiting a franchisee's account for 120% of the most recently debited Royalty Fee and Marketing Fees if Gross Billings cannot be accessed or reported.
To fully understand the 'Base Year Revenue Amount,' a prospective Caring Senior Service franchisee should ask the franchisor for a clear definition of this term and how it is calculated. They should also inquire about how the franchisor determines if revenue has been overstated and what recourse a franchisee has if they disagree with the franchisor's assessment. Understanding these details is crucial for managing royalty fee obligations and avoiding potential disputes.
Further questions should include: What is the process for disputing an overstatement determination? What documentation is required to support revenue reporting? Are there specific accounting methods franchisees must use? Gaining clarity on these points will help a franchisee maintain accurate financial records and ensure compliance with the franchise agreement.