How does Caring Senior Service recognize the remaining 34% of the initial franchise fee?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
anchise Fee
In consideration of the grant of this franchise, you shall pay to us a non-recurring initial franchise fee for the franchise hereunder in an amount equal to Forty-Nine Thousand Dollars ($49,000), unless this amount is otherwise amended in Exhibit A of this Agreement. The initial franchise fee shall be deemed to have been fully earned by us upon execution of this Agreement and is not
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, Caring Senior Service requires a non-recurring initial franchise fee of $49,000. However, for franchisees entering into a Development Addendum, this fee is reduced to $22,500. The FDD states that the initial franchise fee is considered fully earned upon the execution of the franchise agreement and is non-refundable.
The document does not provide details on how Caring Senior Service recognizes the remaining 34% of the initial franchise fee. The FDD excerpts focus on the initial fee amount, payment terms, and conditions under which it is considered earned. It also outlines scenarios where the standard fee is altered through addendums or agreements.
To fully understand how Caring Senior Service recognizes the remaining 34% of the initial franchise fee, a prospective franchisee should inquire directly with the franchisor. Specifically, they should ask for a detailed explanation of the accounting practices related to the initial franchise fee, including any specific conditions or milestones that trigger revenue recognition beyond the initial execution of the agreement. This information is crucial for understanding the financial relationship between the franchisee and Caring Senior Service.