To whom is the Local Advertising and Promotion fee for a Caring Senior Service franchise payable?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Marketing Fee | 2% of Gross Billings | Payable at the same time and in the same manner as the Royalty Fee | See Item 11. |
| Local Advertising and Promotion | $5,000 during your first six months in operation; after which, if you do not have a full-time Homecare Consultant, we may require that you spend, in your next quarter, a maximum of the greater of $2,500 per month or 1% of Gross Billings from your previous quarter | As incurred | Payable to local advertising suppliers. All advertising you want to use must be pre approved by us. After your initial expenditures during your first six months in operation, at any time that you employ a full-time Homecare Consultant, we will not require that you spend a minimum local advertising expenditure amount. During any period you do not have a full time Homecare Consultant, however, you must prepare a quarterly marketing plan outlining your local advertising expenditure. We reserve the right to revise your plan, however, no revision we make will require that you spend, in your next quarter, more than the greater of $2,500 per month or 1% of Gross Billings from your previous quarter. If you do not submit the required marketing plans and reports, or you do not substantially implement any approved marketing plan, we may conduct promotional activities in your Territory for which costs and expenses you agree to reimburse us. |
| Internet Advertising | $400 to $1,000 per month | As incurred | Payable to third parties providing Internet directory listings and other online advertising suppliers we may designate or require you use. |
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 Local Advertising and Promotion fee is payable to local advertising suppliers. During the first six months of operation, franchisees are required to spend $5,000 on local advertising and promotion. After this initial period, if a franchisee does not employ a full-time Homecare Consultant, Caring Senior Service may require them to spend the greater of $2,500 per month or 1% of Gross Billings from the previous quarter on local advertising.
All advertising materials must be pre-approved by Caring Senior Service. If a franchisee employs a full-time Homecare Consultant, there is no minimum local advertising expenditure required. However, if a franchisee does not have a full-time Homecare Consultant, they must prepare a quarterly marketing plan outlining their local advertising expenditure. Caring Senior Service reserves the right to revise this plan, but any revisions will not require the franchisee to spend more than the greater of $2,500 per month or 1% of Gross Billings from the previous quarter.
If a franchisee fails to submit the required marketing plans and reports or does not substantially implement an approved marketing plan, Caring Senior Service may conduct promotional activities in the franchisee's territory, and the franchisee agrees to reimburse Caring Senior Service for the costs and expenses incurred. This arrangement ensures that local advertising efforts are maintained, even if the franchisee is not actively managing them, albeit at the franchisee's expense.