What is the relationship between the note payments and the Caring Senior Service Royalty Fee payments?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly acknowledge and agree that your obligations for the full and timely payment of Royalty Fees and Marketing Fees (and all other amounts provided for in this Agreement) shall be absolute, unconditional, and fully earned. You shall not for any reason delay or withhold the payment of all or any part of those or any other payments due hereunder, put the same in escrow or set-off same against any claims or alleged claims you may allege against us or others. You shall not, on grounds of any alleged non-performance by us or others, withhold payment of any fee, including without limitation Royalty Fees or Marketing Fees, nor withhold or delay submission of any reports due hereunder.
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
Based on the 2025 Caring Senior Service Franchise Disclosure Document, the franchisee's obligation to pay Royalty Fees is absolute and unconditional. The FDD stipulates that franchisees must make full and timely payments of Royalty Fees, Marketing Fees, and all other amounts due under the agreement. Franchisees are explicitly prohibited from delaying or withholding these payments, even in cases of alleged non-performance by Caring Senior Service or any claims against them. This obligation exists independently of any financing arrangements or note payments the franchisee may have.
Specifically, the FDD states that franchisees cannot withhold payment of any fee, including Royalty Fees or Marketing Fees, nor delay submission of any reports due, regardless of any alleged non-performance by Caring Senior Service. This means that even if a franchisee has taken out a loan or has other financial obligations, they must continue to pay the Royalty Fee as scheduled. The Royalty Fee is a percentage of Gross Billings (5%), and failure to pay this fee can result in Caring Senior Service debiting the franchisee's account for 120% of the most recently debited Royalty Fee and Marketing Fees.
In summary, the franchisee's obligation to pay Royalty Fees to Caring Senior Service is separate from and unaffected by any note payments or other financial obligations they may have. The franchisee must continue to pay the Royalty Fee in full and on time, regardless of their financial situation or any disputes they may have with the franchisor. Failure to do so can result in penalties and further action by Caring Senior Service.