What is the definition of 'Royalty Fee' in the context of the Caring Senior Service franchise agreement?

According to the 2025 Caring Senior Service Franchise Disclosure Document, the Royalty Fee is defined as a non-refundable fee. This fee is equal to five percent (5%) of your Gross Billings or the Minimum Royalty Fee, whichever amount is higher. The Royalty Fee is payable every two weeks.

For a prospective Caring Senior Service franchisee, this means that on top of the initial franchise fee, they must also pay an ongoing royalty fee based on their gross revenue. This royalty is a percentage of revenue, not profit, so it must be paid regardless of whether the franchise is profitable. The franchisee needs to be prepared to remit this payment bi-weekly.

The royalty fee structure is typical in franchising, where franchisors collect ongoing fees to support the brand and provide continued services to franchisees. The fact that the royalty fee is non-refundable means that once paid, these fees cannot be recovered, even if the franchisee experiences financial difficulties or terminates the agreement early. The franchisee should carefully consider their projected gross billings to understand the financial impact of this royalty fee.

It is important to note that the royalty fee is either 5% of gross billings or the Minimum Royalty Fee, whichever is higher. The excerpt does not define the Minimum Royalty Fee, so prospective franchisees should clarify the amount and payment schedule of the Minimum Royalty Fee with Caring Senior Service to fully understand the royalty obligations.