What benefit does Caring Senior Service provide in exchange for the Development Fee?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
In turn, during the term of the Development Addendum, we will not establish, or grant anyone else the right to establish, a Franchised Business within the Development Territories included in your Development Addendum. At least once every 15 months during the term, you must enter into our then-current form of franchise agreement for a Development Territory to be developed under your Development Addendum. As long as you exercise your development rights per the terms of the Development Addendum, the Development Fee will result in a credit of $20,000 applied towards the initial franchise fee due under the terms of our then-current franchise agreement.
To the extent a multi-territory discount applies to the purchase of additional Territories under our thencurrent form of franchise agreement, such discounts will be applied at the time you enter into such future franchise agreement with us.
The Development Fee is uniform for all franchisees and is not refundable under any circumstances, regardless of whether you exercise your development rights, as compensation to us for our lost or deferred opportunity to grant franchises in the Development Territories.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the Development Fee grants the franchisee the exclusive right to develop additional Caring Senior Service franchises in specified contiguous territories. This means that Caring Senior Service will not establish, nor allow anyone else to establish, a franchise within those designated Development Territories during the term of the Development Addendum.
To maintain these development rights, the franchisee must enter into Caring Senior Service's then-current franchise agreement for a Development Territory at least once every 15 months. If the franchisee meets these obligations, the $20,000 Development Fee paid for each territory will be credited towards the initial franchise fee due under the terms of the then-current franchise agreement. Furthermore, any multi-territory discounts that Caring Senior Service offers at the time of the future franchise agreement will also be applied.
It's important to note that the Development Fee is uniform for all franchisees and is non-refundable, regardless of whether the franchisee ultimately exercises their development rights. This fee compensates Caring Senior Service for the lost opportunity to grant franchises to others in those territories. Therefore, a prospective franchisee should carefully consider their ability and intention to develop the additional territories before entering into a Development Addendum, as the fee is forfeited even if they choose not to proceed with development.