How is the interim royalty fee determined for a Caring Senior Service conversion franchise?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalties1 | 5% of Gross Billings2 or the Minimum Royalty Fee, whichever is greater. | Payable on the second Friday following completion of the two-week billing period | See Note 2 for our definition of "Gross Billings." Royalty Fees and other continuing fees are payable to us by Electronic Funds Transfer ("EFT"). The "Minimum Royalty Fee" amount 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 outlined in Item 12. |
| For conversion Franchised Businesses, | |||
| under the terms of a Conversion | |||
| Addendum, we will impose a lower Royalty | |||
| Fee amount and scale up to our standard | |||
| Royalty Fee, however, as the amount of | |||
| sales in the prior business impacts the | |||
| length and type of Royalty Fee scale | |||
| applicable, the interim Royalty Fee amounts | |||
| are determined on a case-by-case basis and | |||
| included in the Conversion Addendum. | |||
| Technology Fee | Currently, $1,045 per month | Payable monthly on the second Friday following completion of the two-week billing period that includes the 1st of the month. |
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the interim royalty fee for a conversion franchise is determined on a case-by-case basis and is detailed in the Conversion Addendum. For conversion Franchised Businesses, under the terms of a Conversion Addendum, Caring Senior Service will impose a lower Royalty Fee amount and scale up to their standard Royalty Fee.
The specific amount of sales in the prior business directly impacts the length and type of Royalty Fee scale that will be applied. This means that the royalty fee structure during the initial period after converting to a Caring Senior Service franchise will be tailored to the individual franchisee's circumstances, taking into account the existing business's performance.
Prospective franchisees considering a conversion should carefully review the Conversion Addendum to understand the exact terms of their interim royalty fee schedule. This addendum will outline the reduced royalty fee amount, the scaling schedule, and the factors that influence the fee's progression towards the standard royalty rate. Understanding these terms is crucial for financial planning and assessing the overall profitability of the franchise conversion.