What is the definition of 'Gross Billings' for a Caring Senior Service franchise?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "Gross Billings" means all amounts clients are obligated to pay in connection with the sale of products and services related to the Franchised Business (including all amounts invoiced to clients), regardless of collection, less any sales taxes or taxes collected by you from your clients for transmittal to the appropriate taxing authority and authorized discounts, plus business interruption insurance proceeds.
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Certain portions of our training include advanced courses and may require a certain level of knowledge, experience and/or qualifications before these advanced courses can be taken.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, "Gross Billings" is defined as the total amount clients are obligated to pay for products and services related to the franchised business. This includes all amounts invoiced to clients, regardless of whether those amounts have actually been collected. From this total, franchisees can deduct any sales taxes or similar taxes collected from clients that are then remitted to the appropriate taxing authority. Additionally, authorized discounts can also be deducted from the gross billings amount. Business interruption insurance proceeds are included in gross billings.
This definition is important because Caring Senior Service calculates royalty and marketing fees based on a percentage of gross billings. Therefore, understanding exactly what constitutes gross billings is crucial for franchisees to accurately calculate and pay these fees. The inclusion of invoiced amounts, regardless of collection, means that franchisees are responsible for paying royalties and marketing fees even on unpaid invoices, which could impact their cash flow.
The FDD also states that if Caring Senior Service is unable to access the Gross Billings amount for your Caring Senior Service Business, or if you do not submit your report, Caring Senior Service may debit your account for 120% of the Royalty Fee and Marketing Fee that they most recently debited. If the Royalty Fee and Marketing Fee debited are less than what you owe, Caring Senior Service will debit your account for the balance once they have been able to determine your true and correct Gross Billings. If the Royalty Fee and Marketing Fee debited are greater than what you owe, Caring Senior Service will credit the excess against the amount they otherwise would debit from your account during the following period.
It is important for prospective franchisees to carefully review this definition and understand its implications for their financial obligations to Caring Senior Service. Franchisees should also maintain accurate records of all invoices, collections, taxes, and discounts to ensure accurate reporting of gross billings and to avoid any discrepancies with the franchisor.