What security is required for financing the Caring Senior Service franchise fee?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| Down Payment | At least 50% of the total initial franchise fee under each franchise agreement you intend to sign must be paid at signing and the full remainder may be financed with us. |
|---|---|
| Term | |
| Interest Rate | |
| Payment | Equal monthly payments will be due and payable via ACH on the anniversary of the first payment or, at our discretion, along with each calendar month’s first Royalty Fee payment. Full payment must be made no more than 12 months from your first payment date. Payments will begin within 60 days of the signing of the Franchise Agreement(s). |
| Prepayment and Penalty | |
| Security Required | Guaranty of Payment (Exhibit I to this Disclosure Document) and Payment and Performance Guarantee (attached to Franchise Agreement), each of which must be executed by all of your Owners. The term “Owner” means all individuals who have a direct or indirect beneficial ownership interest in the franchisee. If the franchisee is an entity, this includes the franchisee’s and any of its entity owners’ shareholders, members, general and limited partners, and grantors and trustees, the intent being that all individuals who hold a beneficial interest in the franchisee entity, whether directly or indirectly through other entities, executes the guaranties. |
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–32)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, if a franchisee chooses to finance the remaining portion of the initial franchise fee with Caring Senior Service, they must provide a Guaranty of Payment and a Payment and Performance Guarantee. These guarantees must be executed by all individuals who have a direct or indirect beneficial ownership interest in the franchisee.
For franchisees that are entities, this requirement extends to the entity's shareholders, members, general and limited partners, and grantors and trustees. The intent is to ensure that all individuals with a beneficial interest in the franchisee entity, whether directly or indirectly through other entities, execute the guarantees.
This security requirement ensures that Caring Senior Service has recourse to all owners of the franchise in the event of default. Prospective franchisees should carefully review Exhibit I of the Disclosure Document, which contains the Guaranty of Payment, and the Payment and Performance Guarantee attached to the Franchise Agreement to fully understand their obligations. Franchisees should also consult with a legal and financial advisor to assess the implications of these security requirements.