What were the total operating expenses for Caring Senior Service?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2024 | 2023 | 2022 | |
|---|---|---|---|
| Revenue: | |||
| Royalty fees | $ 382,217 | $ 333,983 | $ 342,194 |
| Software fees | 82,681 | 95,303 | 75,469 |
| Reimbursed charges from franchises | 89,943 | 61,382 | 55,992 |
| Total Revenue | $ 554,841 | $ 490,668 | $ 473,655 |
| Amounts included in Accounts Receivable - Trade | |||
| at December 31 | $ 6,513 | $ 47,203 | $ 37,869 |
| Amounts included in Accounts Payable - Trade | |||
| at December 31 | $ 2,858 | $ 3,232 | $ 528 |
Advances from Related Party
The Partnership leases its employees from Caring Senior Management, LLC under a management agreement. The agreement provides for the staffing requirements of the Partnership, including employee benefits and processing of payroll and payroll-related taxes. Caring Senior Management, LLC is owned by one of the partners of the Partnership. Total salaries, wages, payroll taxes and related benefits amounted to $852,689, $1,276,777, and $988,026 for the years ended December 31, 2024, 2023, and 2022, respectively. The Partnership has a balance payable to Caring Senior Management, LLC of $95,535, $97,126, and $54,538 as of December 31, 20
Source: Item 23 — RECEIPTS (FDD pages 53–204)
What This Means (2025 FDD)
According to the 2025 FDD, Caring Senior Service's financial statements include specific operating expenses such as salaries, wages, payroll taxes, and related benefits. In 2024, these costs totaled $852,689. In 2023, they amounted to $1,276,777, and in 2022, they were $988,026. These figures reflect the expenses related to leasing employees from Caring Senior Management, LLC, under a management agreement that covers staffing requirements, employee benefits, and payroll processing.
For a prospective franchisee, understanding these costs is crucial for financial planning. The fluctuation in these expenses over the three years suggests potential variability in labor costs, which could be influenced by factors such as changes in staffing levels, wage rates, or employee benefits. It's important to note that these figures only represent salaries, wages, payroll taxes, and related benefits for leased employees.
To gain a comprehensive understanding of total operating expenses, a potential franchisee should inquire about other significant costs, such as rent, utilities, advertising, insurance, and other administrative fees. Reviewing the complete financial statements and discussing these expenses with existing franchisees can provide a more accurate picture of the overall cost structure and potential profitability of a Caring Senior Service franchise. This due diligence is essential for making an informed investment decision.
It is also important to note that Caring Senior Management, LLC, from which the employees are leased, is owned by one of the partners of the Partnership. This related-party transaction should be carefully considered, and the terms of the management agreement should be thoroughly reviewed to ensure they are fair and reasonable.