How is the purchase price for the Caring Senior Service assets paid?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
The closing of our purchase of the assets (the "Closing") shall occur at a time and place designated by us, but in no event later than thirty (30) days after determination of the purchase price. The purchase price shall be paid in six (6) equal installments. The first installment shall be paid at the Closing and subsequent installments shall be due every six (6) months. Unpaid installments of the purchase price shall accrue interest from the date of the Closing until paid at the prime rate of interest announced from time to time by Citibank, N.A. or, if said bank stops announcing such a rate, then at the rate such bank charges its largest commercial borrowers for short term borrowing. Payment of any accrued interest shall accompany payments to you of each installment of the purchase price. We shall have the right to offset against and reduce the amount of the first installment of the purchase price, and defer said installment, if necessary, by any and all amounts owed by you to us or any of our affiliates. If you are unable to deliver clear title to all the purchased assets or if there are other unresolved issues, the Closing will be accomplished through an escrow.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to the 2025 Caring Senior Service FDD, when Caring Senior Service purchases assets, the purchase price is paid in six equal installments. The first installment is due at the closing, which will occur no more than 30 days after the purchase price is determined, and subsequent installments are due every six months.
Interest accrues on the unpaid installments from the closing date until they are paid, at a rate equivalent to the prime interest rate announced by Citibank, N.A. If Citibank stops announcing this rate, the interest rate will be the rate that Citibank charges its largest commercial borrowers for short-term borrowing. Payments of accrued interest must accompany each installment payment.
Caring Senior Service has the right to offset and reduce the first installment by any amounts the franchisee owes them or their affiliates and can defer the installment if necessary. If the franchisee cannot deliver a clear title to all purchased assets or if there are unresolved issues, the closing will be managed through an escrow account.