Under what condition does the Caring Senior Service Development Fee result in a credit?
Caring_Senior_Service Franchise · 2025 FDDAnswer from 2025 FDD Document
In turn, during the term of the Development Addendum, we will not establish, or grant anyone else the right to establish, a Franchised Business within the Development Territories included in your Development Addendum. At least once every 15 months during the term, you must enter into our then-current form of franchise agreement for a Development Territory to be developed under your Development Addendum. As long as you exercise your development rights per the terms of the Development Addendum, the Development Fee will result in a credit of $20,000 applied towards the initial franchise fee due under the terms of our then-current franchise agreement.
To the extent a multi-territory discount applies to the purchase of additional Territories under our thencurrent form of franchise agreement, such discounts will be applied at the time you enter into such future franchise agreement with us.
The Development Fee is uniform for all franchisees and is not refundable under any circumstances, regardless of whether you exercise your development rights, as compensation to us for our lost or deferred opportunity to grant franchises in the Development Territories.
Source: Item 5 — INITIAL FEES (FDD pages 10–11)
What This Means (2025 FDD)
According to Caring Senior Service's 2025 Franchise Disclosure Document, the Development Fee paid under the Development Addendum can result in a credit under specific conditions. If a franchisee enters into a Development Addendum, they pay $20,000 per Development Territory.
The Development Fee results in a $20,000 credit towards the initial franchise fee. This credit is applied when the franchisee enters into Caring Senior Service's then-current form of franchise agreement for a Development Territory. This must occur at least once every 15 months during the term of the Development Addendum.
However, the Development Fee is not refundable under any circumstances, regardless of whether the franchisee exercises their development rights. This fee compensates Caring Senior Service for the lost opportunity to grant franchises in those Development Territories to someone else. If a multi-territory discount applies to the purchase of additional Territories under the current franchise agreement, those discounts will be applied when the franchisee enters into the future franchise agreement.