How often is the Royalty Fee for a Caring Senior Service franchise payable?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
Royalty Fee
You agree to pay us a non-refundable royalty ("Royalty Fee") equal to five percent (5%) of your Gross Billings or the Minimum Royalty Fee, whichever amount is higher, payable every two (2) weeks as described in subparagraph (c) below.
- (a) As used herein, the term "Minimum Royalty Fee" 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 set forth in Section 9.3.
- (b) As used herein, the term "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.
- (c) We will collect the Royalty Fee, and any other amounts due to us or our affiliate under this Agreement, by deducting such amounts from your operating account via electronic funds transfer on the second Friday following completion of the previous two (2) week period for which Gross Billings and Royalty Fees are calculated. In the event the Royalty due date is not a business day, we will debit your account on the next business day. You shall establish an arrangement for electronic funds transfer or deposit of any payments required under this Agreement. You shall execute our current form of "Authorization Agreement for Prearranged Payments (Direct Debits)," a copy of which is attached to this
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the Royalty Fee is payable every two weeks. The Royalty Fee is 5% of Gross Billings or the Minimum Royalty Fee, whichever is higher. The franchisor will collect the Royalty Fee and any other amounts due via electronic funds transfer on the second Friday following the completion of the previous two-week period. If the due date is not a business day, the franchisor will debit the franchisee's account on the next business day.
The Minimum Royalty Fee is $150 for each two-week period during the first six months of operation. After that, it becomes 5% of the applicable Gross Billings Target for each two-week period. Gross Billings includes all amounts clients are obligated to pay for products and services, less sales taxes and authorized discounts, plus business interruption insurance proceeds.
Prospective franchisees should note that the obligation to pay Royalty Fees is absolute and unconditional. Franchisees cannot delay or withhold payments, even in cases of alleged non-performance by the franchisor. Franchisees must ensure sufficient funds are available in their account for withdrawal. If Caring Senior Service cannot access the franchisee's Gross Billings, they may debit 120% of the most recently debited Royalty and Marketing Fees. Adjustments will be made once the true Gross Billings are determined.