Is the Caring Senior Service Development Fee refundable, and under what circumstances?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
The Development Fee is uniform for all franchisees and is not refundable under any circumstances, regardless of whether you exercise your development rights, as compensation to us for our lost or deferred opportunity to grant franchises in the Development Territories.
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 not refundable under any circumstances. This fee is uniform for all franchisees. The document specifies that the Development Fee will not be returned, regardless of whether the franchisee ultimately exercises their development rights in the reserved territories.
The Development Fee compensates Caring Senior Service for the lost or deferred opportunity to grant franchises to other parties within the designated Development Territories. This means that Caring Senior Service agrees not to establish, or allow anyone else to establish, a Franchised Business within the Development Territories included in the Development Addendum during the term of the agreement.
While the Development Fee itself is non-refundable, the FDD states that it results in a credit of $20,000 applied towards the initial franchise fee due under the terms of Caring Senior Service's then-current franchise agreement. This credit is applied as long as the franchisee exercises their development rights per the terms of the Development Addendum. Franchisees must enter into Caring Senior Service's then-current form of franchise agreement for a Development Territory to be developed under their Development Addendum at least once every 15 months during the term.
Prospective franchisees should carefully consider these terms, as they will forfeit the Development Fee if they fail to develop the additional territories within the specified timeframe. This non-refundable policy is fairly standard in franchising, as it compensates the franchisor for holding the territory and foregoing other potential franchisees.