When does the Caring Senior Service franchisee begin paying the Royalty Fee?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalty Fee
You agree to pay us a non-refundable royalty ("Royalty Fee") equal to five percent (5%) of your Gross Billings or the Minimum Royalty Fee, whichever amount is higher, payable every two (2) weeks as described in subparagraph (c) below.
- (a) As used herein, the term "Minimum Royalty Fee" equals $150 for each two-week period in which Gross Billings are calculated during your first six months of operation and, afterwards, 5% of the applicable Gross Billings Target for each two-week period in which Gross Billings are calculated and as set forth in Section 9.3.
- (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 amou
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the franchisee is obligated to pay a royalty fee equal to 5% of Gross Billings or a Minimum Royalty Fee, whichever is higher. This fee is non-refundable and payable every two weeks.
The Minimum Royalty Fee is set at $150 for each two-week period during the first six months of operation. After this initial period, the Minimum Royalty Fee transitions to 5% of the applicable Gross Billings Target for each two-week period.
This means that a new Caring Senior Service franchisee will start paying royalty fees from the beginning of their operations, with a fixed minimum for the first six months before it potentially scales up based on their Gross Billings Target. It is important for prospective franchisees to understand how the Gross Billings Target is calculated, as this will directly impact their royalty payments after the initial six-month period.