For Caring Senior Service, what is included in the definition of 'Gross Billings'?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- "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 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, Gross Billings are used to calculate royalty fees, marketing fees, and local advertising expenditures. Gross Billings are defined as the total amount clients are obligated to pay for products and services related to the franchised business. This includes all amounts invoiced to clients, regardless of whether Caring Senior Service has actually collected the payment.
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. Franchisees can also deduct authorized discounts. Business interruption insurance proceeds are added to the total.
Understanding the components of Gross Billings is crucial for prospective Caring Senior Service franchisees. It directly impacts the fees payable to the franchisor and the required local advertising spend. Franchisees should ensure they accurately track and report these figures to avoid penalties or disputes with Caring Senior Service.