How are Royalty Fees and other continuing fees paid to Caring Senior Service?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Fee | Amount | Due Date | Remarks |
|---|---|---|---|
| Royalties1 | 5% of Gross Billings2 or the Minimum Royalty Fee, whichever is greater. | Payable on the second Friday following completion of the two-week billing period | See Note 2 for our definition of "Gross Billings." Royalty Fees and other continuing fees are payable to us by Electronic Funds Transfer ("EFT"). The "Minimum Royalty Fee" amount equals $150 for each two-week period in which |
| Fee | Amount | Due Date | Remarks |
| ----------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------------------- | ------------------------------ | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| Interest on Late Payments | 1.5% per month or the highest legal contract rate, whichever is less | As incurred | Payable on all amounts owed to us that are not paid by their due dates. Interest accrues from the original due date until payment is received in full. |
| Interest on Late Promissory Note Payments | $50 | As incurred | Payable if payment is more than five days past due. |
| Administrative Fee for Billing Not Completed in our System for each Bi Weekly Period | $200 per billing period | As incurred | Payable if you have not completed your bi weekly billing as required in our system to all clients on time for each period. |
Except for the conference attendance fee, all fees are uniformly imposed and payable to us, unless otherwise noted, and are payable by electronic funds transfer/automatic debit from your operating account, unless we specify otherwise.
If we are unable to access the Gross Billings amount for your Caring Senior Service Business, or if we permit you to report Gross Billings and you do not submit your report, we may debit your account for 120% of the Royalty Fee and Marketing Fee 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.
"Gross Billings" means all amounts clients are obligated to pay in connection with the sale of products and services related to the Franchised Business (including all amounts invoiced to clients), regardless of collection, less any sales taxes or taxes collected by you from your clients for transmittal to the appropriate taxing authority and authorized discounts, plus business interruption insurance proceeds.
Source: Item 6 — OTHER FEES (FDD pages 12–17)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, royalty fees and other continuing fees are primarily paid via electronic funds transfer (EFT). The royalty fee is 5% of Gross Billings or the Minimum Royalty Fee, whichever is greater. The Minimum Royalty Fee is $150 for each two-week period in which the 5% of Gross Billings is less than $150. Gross Billings includes all amounts clients are obligated to pay in connection with the sale of products and services related to the Franchised Business, less any sales taxes or taxes collected and authorized discounts, plus business interruption insurance proceeds. Royalty payments are due on the second Friday following the completion of each two-week billing period.
If Caring Senior Service is unable to access the Gross Billings amount or if the franchisee fails to submit their report, Caring Senior Service may debit the franchisee's account for 120% of the most recently debited Royalty Fee and Marketing Fee. If this debit is less than what is actually owed, the remaining balance will be debited once the true Gross Billings are determined. Conversely, if the debit exceeds the actual amount owed, the excess will be credited against the subsequent debit.
Except for the conference attendance fee, all fees are uniformly imposed and payable to Caring Senior Service, unless otherwise noted. Interest accrues at a rate of 1.5% per month, or the highest legal contract rate, whichever is less, on all overdue amounts from the original due date until full payment is received. A $50 fee is applied to late promissory note payments if the payment is more than five days past due. Additionally, a $200 administrative fee is charged per billing period if the franchisee does not complete their bi-weekly billing in the Caring Senior Service system on time.