What were the Caring Senior Service royalty fees in 2022?
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.
You must pay to us a marketing fee ("Marketing Fee") equal to 2% of Gross Billings. In consideration for the Marketing Fee, we will provide such advertising, marketing, and promotional services as we deem appropriate. Marketing Fees are payable at the same time and in the same manner as the Royalty Fee described above.
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.
- (d) You agree that sufficient funds will be made available in your account for withdrawal.
- (e) If we are unable to access your Gross Billings, or if we permit you to report your Gross Billings and you do not submit such report, for your Caring Senior Service Business, we may debit your account for one hundred twenty percent (120%) of the Royalty Fee and Marketing Fees that we most recently debited. If the Royalty Fee and Marketing Fee we debit are less than the Royalty Fee and Marketing Fee you actually owe us, once we have been able to determine your true and correct Gross Billings, we will debit your account for the balance on a day we specify. If the Royalty Fee and Marketing Fee we debit are greater than the Royalty Fee and Marketing Fee you actually owe us, we will credit the excess against the amount we otherwise would debit from your account during the following period.
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 5% of Gross Billings or the Minimum Royalty Fee, whichever is higher. This fee is non-refundable and payable every two weeks.
In addition to the royalty fee, Caring Senior Service franchisees must also pay a marketing fee equal to 2% of Gross Billings, which covers advertising, marketing, and promotional services provided by the franchisor. This marketing fee is payable at the same time and in the same manner as the royalty fee.
The FDD states that the franchisee's obligation to pay royalty and marketing fees is absolute, unconditional, and fully earned. Franchisees cannot delay or withhold these payments, even in the event of a dispute or alleged non-performance by the franchisor. Sufficient funds must be available in the franchisee's account for withdrawal of these fees. If Caring Senior Service is unable to access the franchisee's Gross Billings, they may debit the account for 120% of the most recently debited Royalty Fee and Marketing Fees. Once the true Gross Billings are determined, adjustments will be made accordingly.
While the document specifies the royalty fee structure, it does not provide the actual royalty fees paid by franchisees in 2022. To obtain this information, a prospective franchisee should ask the franchisor directly for the average or median royalty fees paid by franchisees in 2022. This will provide a clearer picture of the actual royalty fee amounts paid by franchisees.