When does Caring Senior Service deduct the Royalty Fee from the franchisee's operating account?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to pay us a non-refundable royalty ("Royalty Fee") equal to five percent (5%) of your Gross Billings or the Minimum Royalty Fee, whichever amount is higher, payable every two (2) weeks as described in subparagraph (c) below.
- (c) We will collect the Royalty Fee, and any other amounts due to us or our affiliate under this Agreement, by deducting such amounts from your operating account via electronic funds transfer on the second Friday following completion of the previous two (2) week period for which Gross Billings and Royalty Fees are calculated. In the event the Royalty due date is not a business day, we will debit your account on the next business day. You shall establish an arrangement for electronic funds transfer or deposit of any payments required under this Agreement. You shall execute our current form of "Authorization Agreement for Prearranged Payments (Direct Debits)," a copy of which is attached to this Agreement as
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the Royalty Fee, which is 5% of Gross Billings or the Minimum Royalty Fee (whichever is higher), is collected every two weeks. Specifically, Caring Senior Service deducts the Royalty Fee, along with any other amounts owed to them or their affiliates, from the franchisee's operating account via electronic funds transfer. This deduction occurs on the second Friday following the completion of the two-week period for which Gross Billings and Royalty Fees are calculated. If the Royalty due date falls on a non-business day, the deduction will occur on the next business day.
Franchisees are required to establish an arrangement for electronic funds transfer to facilitate these payments. They must also complete Caring Senior Service's "Authorization Agreement for Prearranged Payments (Direct Debits)", which is included as Exhibit H to the Franchise Agreement, or any other required forms from Caring Senior Service, their bank, or the franchisee's bank. Franchisees must also adhere to the payment and reporting procedures outlined in the Confidential Operations Manual.
The obligation to pay Royalty Fees and Marketing Fees is absolute and unconditional. Franchisees cannot delay or withhold payments, place funds in escrow, or offset payments against any claims they may have against Caring Senior Service. Non-payment due to alleged non-performance by Caring Senior Service is also prohibited. Sufficient funds must be available in the franchisee's account for withdrawal by Caring Senior Service.
If Caring Senior Service cannot access the franchisee's Gross Billings or if the franchisee fails to submit a required report, Caring Senior Service may debit the franchisee's account for 120% of the most recently debited Royalty Fee and Marketing Fees. If this debit is less than the actual amount owed, Caring Senior Service will debit the remaining balance once the correct Gross Billings are determined. Conversely, if the debit is greater than the amount owed, Caring Senior Service will credit the excess amount against the subsequent period's debit.