For a Caring Senior Service franchise, what is included in the definition of 'Gross Billings'?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) As used herein, the term "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.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, "Gross Billings" is a key figure used to calculate royalty and marketing fees. It is defined as all amounts clients are obligated to pay for products and services related to the franchised business, including all amounts invoiced to clients, regardless of whether those amounts have actually been collected.
From this total, Caring Senior Service franchisees can deduct any sales taxes or taxes they collect from clients that are then transmitted to the appropriate taxing authority. Additionally, authorized discounts can also be subtracted from the total invoiced amount when calculating Gross Billings.
Finally, the definition of Gross Billings includes business interruption insurance proceeds. This means that if a Caring Senior Service franchisee experiences a business interruption and receives insurance payments to cover lost revenue, those payments must be included when calculating Gross Billings for the purpose of determining royalty and marketing fees.