How can a Caring Senior Service franchisee reserve additional territories?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement does not provide you with a right of first refusal to acquire additional franchises; however you may reserve additional territories if you enter into our Development Addendum which is described below.
Development Addendum
Under the Development Addendum, you have the right to reserve additional Territories for future purchase. We will mutually agree on the additional Development Territories for which you are purchasing the right to develop and include each under the terms of your Development Addendum. In order to develop a Franchised Business in each Development Territory, you must execute our then-current form of franchise agreement. During the term of the Development Addendum, we will not develop nor grant to anyone else the right to develop a Franchised Business within the Development Territories. Except as described above, you will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
At least once every 15 months under the term of the Development Addendum, you must enter into a franchise agreement for one of the Development Territories designated in the Development Addendum and open the corresponding Franchised Business. You may request in writing, and we will give you, one sixmonth extension per 15-month development period. If you miss the deadline to sign a franchise agreement or open the corresponding Franchised Business every 15 months, or by the end of any requested six-month extension, if applicable, the Development Addendum will automatically expire and we will be free to sell those Territories to another franchisee. At the time you apply to us to exercise your development right and enter into a franchise agreement, you must: (1) be in compliance under your agreements with us and our affiliates; (2) be operating your existing Franchised Businesses and we determine that you are capable of operating an additional Franchised Business; (3) you satisfy our then-current financial criteria for franchisees; (4) you have achieved minimum performance benchmarks for multi-Territory franchisees as set in our Operations Manual; (5) in the preceding 12 months you have not been in financial default under your agreements with us or our affiliates; (6) you have submitted all information and documents requested by us; (7) you and your guarantors execute our form of general release.
Source: Item 12 — TERRITORY (FDD pages 33–35)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, a franchisee can reserve additional territories by entering into a Development Addendum. The franchisee and Caring Senior Service will mutually agree on the additional territories that the franchisee is purchasing the right to develop, and these will be included in the Development Addendum. During the term of the Development Addendum, Caring Senior Service will not develop or grant anyone else the right to develop a franchise within these reserved territories. To develop a Caring Senior Service business in each development territory, the franchisee must execute the then-current form of the franchise agreement.
At least once every 15 months under the term of the Development Addendum, the franchisee must enter into a franchise agreement for one of the development territories and open the corresponding franchised business. The franchisee can request one six-month extension per 15-month development period. If the franchisee misses the deadline to sign a franchise agreement or open the business every 15 months, or by the end of any requested six-month extension, the Development Addendum will automatically expire, and Caring Senior Service will be free to sell those territories to another franchisee.
To exercise the development right and enter into a franchise agreement, the franchisee must: be in compliance with all agreements with Caring Senior Service and its affiliates; be operating their existing franchised businesses and be deemed capable of operating an additional franchised business; satisfy Caring Senior Service's then-current financial criteria for franchisees; have achieved minimum performance benchmarks for multi-territory franchisees as set in the Operations Manual; not have been in financial default in the preceding 12 months; submit all requested information and documents; and execute Caring Senior Service's form of general release. This ensures that franchisees expanding their operations are in good standing and capable of managing additional territories, which protects the brand and overall network quality.