Does Caring Senior Service reserve the right to earn revenue from approved suppliers?

According to Caring Senior Service's 2025 Franchise Disclosure Document, Caring Senior Service retains the right to generate income from approved suppliers. This revenue may come in the form of rebates, commissions, or other types of compensation that are based on the purchases made by Caring Senior Service businesses within the franchise system. The FDD states that there are no restrictions placed on how Caring Senior Service uses this money.

For a prospective franchisee, this means that Caring Senior Service could potentially benefit financially from the franchisee's purchases from approved suppliers. While this is a common practice in franchising, it's important to understand that Caring Senior Service has the potential to profit from these arrangements. This could influence which suppliers are approved and the terms negotiated with those suppliers.

The FDD also indicates that during the fiscal year ended December 31, 2024, Caring Senior Service's total revenue was $3,592,410, with 36% (or $1,297,770) resulting from franchisee purchases and leases from Caring Senior Service. While the document states that Caring Senior Service does not currently receive any other rebate amounts, it reserves the right to establish purchasing or distribution cooperatives in the future. This could further impact the cost and sourcing of goods and services for franchisees.

Prospective franchisees should consider the implications of these revenue arrangements and how they might affect their operating costs and supplier choices. It would be prudent to inquire about the criteria Caring Senior Service uses to select and approve suppliers, the specific types of compensation Caring Senior Service receives from these suppliers, and how these arrangements benefit the franchisees within the Caring Senior Service system.