Is the Royalty Fee for Caring Senior Service refundable?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 generally non-refundable. The franchisee must pay a royalty fee equal to 5% of gross billings or a minimum royalty fee, whichever is higher. This fee is payable every two weeks. 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.
The FDD specifies that the franchisee's obligation to pay royalty fees is absolute, unconditional, and fully earned. Franchisees are not allowed to delay or withhold royalty payments for any reason, including alleged non-performance by Caring Senior Service. They also cannot offset these payments against any claims they might have against Caring Senior Service.
Caring Senior Service collects the royalty fee via electronic funds transfer from the franchisee's operating account every two weeks. If a franchisee overpays the royalty fee, Caring Senior Service will credit the excess amount against the amount they would otherwise debit from the franchisee's account during the following period. This indicates that while direct refunds are not provided, adjustments are made to correct overpayments in subsequent billing cycles.