Can a Caring Senior Service franchisee delay or withhold Royalty Fee payments?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly acknowledge and agree that your obligations for the full and timely payment of Royalty Fees and Marketing Fees (and all other amounts provided for in this Agreement) shall be absolute, unconditional, and fully earned. You shall not for any reason delay or withhold the payment of all or any part of those or any other payments due hereunder, put the same in escrow or set-off same against any claims or alleged claims you may allege against us or others. You shall not, on grounds of any alleged non-performance by us or others, withhold payment of any fee, including without limitation Royalty Fees or Marketing Fees, nor withhold or delay submission of any reports due hereunder.
- (d) You agree that sufficient funds will be made available in your account for withdrawal.
- (e) If we are unable to access your Gross Billings, or if we permit you to report your Gross Billings and you do not submit such report, for your Caring Senior Service Business, we may debit your account for one hundred twenty percent (120%) of the Royalty Fee and Marketing Fees that we most recently debited. If the Royalty Fee and Marketing Fee we debit are less than the Royalty Fee and Marketing Fee you actually owe us, once we have been able to determine your true and correct Gross Billings, we will debit your account for the balance on a day we specify. If the Royalty Fee and Marketing Fee we debit are greater than the Royalty Fee and Marketing Fee you actually owe us, we will credit the excess against the amount we otherwise would debit from your account during the following period.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to the 2025 Caring Senior Service Franchise Disclosure Document, franchisees are explicitly prohibited from delaying or withholding Royalty Fee and Marketing Fee payments. The FDD states that the obligation for timely payment of these fees, along with all other amounts due, is absolute and unconditional.
Specifically, a Caring Senior Service franchisee cannot delay or withhold payments, put the payments in escrow, or offset them against any claims they may have against Caring Senior Service. This requirement extends to all fees, including Royalty Fees and Marketing Fees, regardless of any alleged non-performance by Caring Senior Service. Franchisees also cannot delay or withhold the submission of any reports required under the agreement.
Caring Senior Service also has the right to debit a franchisee's account for 120% of the most recently debited Royalty Fee and Marketing Fees if they are unable to access the franchisee's Gross Billings or if the franchisee fails to submit the required report. If this debit is less than what is actually owed, Caring Senior Service will debit the account for the remaining balance. If the debit is more than what is owed, the excess will be credited against the amount debited in the following period. This ensures that Caring Senior Service receives its fees in a timely manner and discourages franchisees from delaying or withholding payments.