What is included in the definition of 'Gross Billings' for a Caring Senior Service franchise?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
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- "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" is defined as all amounts clients are obligated to pay for products and services related to the franchised business. This includes all amounts invoiced to clients, regardless of whether those amounts have actually been collected.
However, there are some deductions allowed when calculating Gross Billings. Franchisees can subtract any sales taxes or other taxes they collect from clients that are then transmitted to the appropriate taxing authority. Additionally, authorized discounts can also be deducted from the total invoiced amount when calculating Gross Billings.
Finally, the definition of Gross Billings also includes business interruption insurance proceeds. This means that if a Caring Senior Service franchise experiences a business interruption and receives insurance payments to cover lost revenue, those payments must be included when calculating Gross Billings. This comprehensive definition ensures that all revenue streams are accounted for when determining royalty and other fee obligations to Caring Senior Service.