Does the Caring Senior Service Development Addendum affect the royalty fees?
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.
This Addendum, together with the Franchise Agreement to which it is attached, constitutes the entire agreement of the parties with respect to the subject matter hereof and may not be further modified or amended except in a written agreement signed by both parties.
The terms of this Addendum are non-transferrable.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to the 2025 Caring Senior Service Franchise Disclosure Document, the Development Addendum can affect the royalty fees under specific circumstances. If Caring Senior Service determines that a franchisee has overstated their Base Year Revenue Amount by 2% or more, the franchisee will be required to pay the difference between the reduced royalty fee outlined in Section 8 of the addendum and the original royalty fee detailed in Section 5.2 of the Franchise Agreement.
Following this payment, the royalty fee will revert back to the original amount specified in Section 5.2 of the Franchise Agreement. This adjustment ensures that Caring Senior Service is compensated correctly based on accurate revenue reporting.
This addendum, along with the Franchise Agreement, constitutes the entire agreement between the parties regarding its subject matter. It cannot be modified or amended unless both parties sign a written agreement. The terms of the Development Addendum are non-transferrable, meaning they apply specifically to the original franchisee and cannot be passed on to another party.