When is the Development Fee paid to Caring Senior Service?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
For each Development Territory we mutually agree to and include in the Development Addendum, you will pay to us, on the signing of your Development Addendum, $20,000 per Development Territory included in the Development Addendum (the "Development Fee"). For example, if you are executing your first franchise agreement with us, and simultaneously entering into a Development Addendum for two Development Territories, you will pay to us: (i) a $49,000 Franchise Fee under your first franchise agreement with us; and (ii) $40,000 as a Development Fee under your Development Addendum (calculated as $20,000 for each Development Territory).
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.
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 is due upon signing the Development Addendum to the Franchise Agreement. This addendum allows a franchisee the opportunity to purchase the rights to develop additional franchised businesses in contiguous territories. The Development Fee is $20,000 per Development Territory included in the Development Addendum.
For example, if a new franchisee is signing their first franchise agreement and simultaneously entering into a Development Addendum for two Development Territories, they would pay a $49,000 initial Franchise Fee and a $40,000 Development Fee (calculated as $20,000 per territory). This fee is compensation to Caring Senior Service for the lost opportunity to grant franchises in those territories to someone else.
The Development Fee is uniform for all franchisees and is non-refundable under any circumstances, regardless of whether the franchisee exercises their development rights. However, as long as the franchisee exercises their 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 the then-current franchise agreement.